CAD/JPY 1H Chart: Channel Down

Dukascopy Bank Team Dukascopy Bank SA

Comment: CAD/JPY confirmed a double top at 88.62 from the four hour chart with a descending channel pattern it entered over the last week. Currently on its way to the bottom trend-line at 86.35, the pair is likely to remain in the red zone for now and bounce from the area to comply with the up-wave implied by the pattern. Immediate support lies at 86.66 and the rate is now showing some trouble in diving beneath; however, we will look for the area to break to the downside, which would then open the way for 86.48/45 – the last level before the boundary.

EUR/USD 30M Chart: Descending Triangle

Comment: Following a break above the upper trend-line of the senior three-month channel, EUR/USD entered a ranging motion and could potentially have sketched a double top formation at 1.0675. Most recent movements indicate a small-scale descending triangle, which is about to be broken – most likely to the downside. The pair is currently on a quite crucial step, which could either confirm the trading range or the double top, with strong bearish pressures taking over in case of the latter. A break below 1.0605 would therefore mean a conclusive reversal, while a close above 1.0616, the upper trend-line of the triangle, would suggest a surge towards 1.0675.

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Dukascopy Bank SA

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