CAD/JPY 1H Chart: Double Bottom

USD/CAD 1H Chart: Rising Wedge

Comment: A jump to a five-year high of 1.1279 provoked a sharp depreciation of the U.S. Dollar against the currency of the neighbouring country, with USD/CAD losing over 420 pips during three weeks. However, after a slid to a threemonth low the pair managed to change its trend by entering a rising wedge pattern.

At the moment of writing, the currency couple was sitting near the lower limit of the formation that is a sign of a probable breakout. Nevertheless, the pair’s prospects are obscure since traders are not univocal on the pair– the proportion of short positions almost equals to the proportion of the long ones.

CAD/JPY 1H Chart: Double Bottom

Comment: A two-week rally that took CAD/JPY to more than a two-month high of 94.90 ended in the very beginning of April when the pair started an accelerating decline. The 88-bar long double bottom pattern being currently formed by the instrument also is a part of this long-lasting weakness.

However, now the era of losses seems to have come to an end as the pair finally managed to surpass the neck-line at 93.01 that means the breakout may have happened and as a result a sharp appreciation may lie ahead. Technical indicators support this idea, sending ‘buy’ signals for the short and long terms.

EUR/CAD 1H Chart: Triangle

Comment: The Euro demonstrated a similar strength against the Canadian Dollar as the U.S. currency did in mid-March. However, this time a rise from a two-month low helped the pair to shape a triangle pattern that now 100-bar long and has both quality and magnitude above average.

Now EUR/CAD is unremittingly nearing the apex that will be reached later in the day. This signifies that the pair is on the verge of a breakout that will either give the currency couple an impulse for a rally or put a heavy drag on the instrument. Technical numbers fail to provide any hint regarding the pair’s move in the nearest term but point to a weakness in the long-term.

AUD/CHF 1H Chart: Falling Wedge

Comment: Since early April when AUD/CHF attained a five-month high of 0.8325, the currency couple has been in the down-trend that led to formation of the steadily converging bearish corridor.

At the moment, the pair is vacillating below the short- and long-term SMAs, albeit slightly. In the hours to come, AUD/CHF may attempt to break through its SMAs meandering close to 0.8256 as almost two thirds of market participants bet on appreciation of the pair. Meanwhile, technical signals are neutral for the next one and four hours but send ‘buy’ signal for longer period.