EUR/TRY 1H Chart: Channel Down

CAD/JPY 1H Chart: Descending Triangle

Comment: A retreat that followed a jump to a seven-month high of 96.23 pushed CAD/JPY into a 76-bar long descending triangle pattern early July. However, now we can see a demonstration of the pair’s unwillingness to succumb to selling pressure— CAD/JPY has recently exited the formation by breaking the upper limit and consolidating above this formidable resistance line. At the moment, the instrument is sitting slightly below the daily pivot point at 94.55 but given strong bullishness on the SWFX – 70% of all positions are long – the Canadian Dollar is likely to appreciate against its Asian counterpart in the hours to come.

EUR/PLN 1H Chart: Triangle

Comment: Although EUR/PLN has been trading sideways since mid-June, now we can expect some notable moves to take place since the currency couple eventually left the triangle pattern that has been restricting the pair’s upswings and downswings for the last 156 hours. In particular, the currency pair had dropped below the lower boundary a few hours before it reached the apex on Jul 15 and currently, it is still in the down-trend. The fact that the short-term SMA has just fall under the long-term SMA at 4.1406 confirms that a deepening sell-off is likely to lie ahead. The SWFX numbers validate the bearish view, indicating over 78% of market players bet on depreciation of the pair.

EUR/TRY 1H Chart: Channel Down

Comment: The Euro has been losing ground versus the Turkish Lira for almost a month; however, the formation of the bearish corridor started only around 10 days earlier, when the pair’s down-trend became more distinct.

At the moment, the currency couple is trading in the lower end of the tunnel and we may witness an accelerating decline before long considering that more than 80% of all orders on the SWFX are placed to sell the pair. If this comes true, EUR/PLN may dive below 2.8811/796 (daily S1, S2; pattern’s support) that in turn may lead to a bearish breakout followed by a notable retreat.

CAD/CHF 1H Chart: Ascending Triangle

Comment: A short, only 62-bar long, ascending triangle pattern was formed with the help of the Canadian Dollar. However, this time the loonie was vacillating against the Swiss Franc and in contrast to CAD/JPY trend examined earlier the current formation has a bullish bias.

Right now CAD/CHF is sitting inside the triangle not far away from the apex that will be attained later in the day. As the SWFX data suggests, the pair is likely to enjoy a rapid rally in the foreseeable future; four out of five traders expect the pair to advance in the hours to come. Technical numbers also prop up the traders’ opinion, sending a ‘buy’ signal for the four-hour perspective.