USD/CHF: For the last few weeks, the pair was clearly downtrend oriented. The last decrease started at the level 0.9851 and last for about 300 pips.
USD/CAD:After the breach of an important support level at 1.011 occurred a few sessions ago, a non confirmed bullish envelope appeared.
One-hour graph: http://www.real-forex.com/charts-daily/141010/CHF_1H_141010.JPG
For the last few weeks, the pair was clearly downtrend oriented. The last decrease started at the level 0.9851 and last for about 300 pips. However, it corrected itself until 0.9730, which is exactly a correction of two thirds.
Once this level reached, a bullish envelope template appeared, suggesting the end of the correction, and the beginning of a reversing trend, creating the opportunity for a “Short”.
Suggestion: Looking for a descending configuration on one-hour graph. Our analysis suggests the apparition of this configuration once the support level 0.9545 crossed.
· “Limit” order on “Short” position 10 pips below the support, meaning: 0.9535.
· “Stop Loss” order on the last high occurred: 0.9641
Our suggestion to reduce this large “Stop loss”: Wait for a first breach and its technical correction. When the second breach occurs, place your “Stop order” on the last high appeared.
After the breach of an important support level at 1.011 occurred a few sessions ago, a non confirmed bullish envelope template appeared. The expected reversal didn’t occur and the pair is still decreasing.
Please pay attention to the important support at 0.9974. If the pair crosses that support, a stop in the trend followed by a correction may be expected. A confirmation of this could be a daily reversing candle on the support mentioned.
If such a candle appears, opening a “Long” transaction might be a great option of trade.
Have a profitable day!