Welcome to a brand spankin’ new trading week, brothas! Let’s get you started with these hot triangle and countertrend setups on USD/CAD and EUR/CHF!
First up is a nice and simple countertrend trade on USD/CAD. The pair looks like it’s about to bounce from the 1.2575 area, which is right smack at the channel support on the 1-hour time frame.
What makes this setup more interesting is that it lines up with an area of interest from as far back as mid-July. Oh, and check out that bullish divergence poppin’ up on the chart!
Buying at current levels could get you a sweet reward-to-risk ratio especially if you aim for the channel resistance near the 100 and 200 SMA and the 1.2700 major psychological handle.
Watch yo backs, though, as countertrend trading isn’t for everyone. Make sure y’all have tight risk management practices when you trade countertrend setups like these!
Who’s up for some breakout action? I hope you are, because this setup is too good to miss! EUR/CHF is headed fast for the 1.1400 major psychological handle, which lines up nicely with a descending triangle resistance on the 4-hour chart.
You could buy at current levels and get a pip or two from the setup if you’re confident that the pair will hit the triangle resistance in the next couple of days.
If you’re one of them euro bears, though, then you could also wait for the pair to hit the resistance or get some bearish momentum before shorting the euro. Watch this one closely, brothas!