Whether you like trading major dollar pairs or currency crosses, I got yo back with these hot trend and support plays on USD/CAD and EUR/GBP. Check it!
Trend alert! EUR/GBP is lollygagging at the .9200 major psychological handle, which is right smack at a falling channel resistance on the 1-hour time frame. What makes this setup so hot is that price is also near the 100 SMA that had just crossed below the 200 SMA. Read up on trading SMA crossovers if you’re new to the biz and you don’t know what that means!
Stochastic has already left overbought territory, so the bears have less pressure to jump in. Watch this one closely, though! A bounce lower could drag it back to at least its .9150 lows, while an upside breakout could lead to a move back to the .9300 highs.
Here’s a nice and simple support and resistance play for ya! USD/CAD is chillin’ like ice cream villain on the 1.2400 psychological handle, which had been a major area of interest from as far back as February 2015.
Right now the pair is sporting a bullish divergence on the daily time frame. Candlesticks have yet to show a bullish momentum, however, so y’all might want to wait a bit before buying this one like it’s going out of style.
Meanwhile, breakout traders could also trade a break below this major support level and aim for other areas of interest like 1.2300 and 1.2000. Whichever bias you trade, make sure place wide stops when trading longer time frames like these!