I don’t watch this pair often, but when I do, it’s to spot a slow but steady uptrend. EUR/CAD is currently supported by the 1.4700 major psychological handle, which lines up nicely with a rising channel support on the 1-hour time frame. Stochastic is also almost at the oversold area, so you can bet your next pips that the bulls are already watching. A long trade at current levels could get you decent pips if you aim for the channel resistance around the 1.4900 levels. Just remember to keep your stops loose, as currency crosses like this one tend to be more volatile than the majors.
Remember that Guppy downtrend that we were watching a couple of days back? Well, it looks like we have another chance at shorting! The pair is trading just below the 161.00 area, which is also where the 100 and 200 SMAs are hanging around at. The fact that Stochastic has also just hit the overbought region might be enough to get the attention of some pound bears. Stops above the falling channel and SMA resistance levels could get you a nice trade if you think that the pound is in for more losses against the yen. Time to bring out your trading journals and scratch your trading plans in place!
Here’s one for position traders! Cable found support at the 1.3800 area in late February and looks like it’s now headed for the 1.4500 – 1.4600 levels. What makes this setup interesting is that those levels line up with not only a falling trend line, but also the 100 and 200 SMAs. Traders pay a lot of attention to long-term trend line retests, so make sure you do, too!
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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.