Remember that uptrend we were looking at yesterday? Well, I hope you took it because the pair did pop up! Right now it’s presenting a pretty good setup for countertrend traders, as it’s consolidating just below the rising channel resistance. Not only that, but Stochastic is also hitting the overbought territory. A short at current levels could get you some pips if you aim for the channel support. Be careful of countertrend trading though. It’s not for everyone!
Somebody holler at Happy Pip because her potential trade is lookin’ too good to miss! USD/CAD is about to hit the 1.3600 major psychological level, which lines up nicely with a 100 SMA an 61.8% Fib on the daily chart. Will these support areas be enough to contain the Loonie bulls, or will we see more gains from the comdoll? As with trading currency crosses, make sure you leave enough room for volatility if you’re trading higher time frames. Better yet, read about long-term trading if you haven’t done it yet!
I spy with my eyes a double bottom in the making! CAD/JPY has just made its second bounce from the 80.00 levels and is zooming fast for the potential neckline around the 97.00 major psychological handle. Think the Loonie is in for more gains against the yen? A long trade at current levels could make you some pips if you’re confident that CAD/JPY will break above 97.00 Of course, you could also wait for an actual double bottom breakout if you’re not too sure about buying the Loonie just yet.
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.