No forex trades yet today? No problem! Check out the uptrend forming on USD/CAD and a possible long-term retracement poppin’ up on EUR/GBP’s chart!
Is USD/CAD turning a corner these days? The pair has halted its downtrend after finding support at the 1.2050 area and it looks like it’s forming a small rising channel on the 1-hour time frame.
The pair is currently supported by the 1.2150 MiPs, which is right smack at the rising channel AND 100 SMA support. What’s more, stochastic is chillin’ like a villain on the oversold territory!
Buying at current levels could get you a pip or two (or a hundred) if you think that the Greenback would revisit its previous highs near 1.2250. If you’d rather buy the Loonie, though, then you could also wait for the pair to break below the channel support and aim for the 1.2050 previous lows instead.
Here’s one for my currency cross homies out there! EUR/GBP is headed fast for the .8770 zone, which happens to line up with a range resistance that the pair had broken back in early July.
What’s interesting about the level is that it’s also around the 100 and 200 SMAs as well as the 50% – 61.8% Fib retracement levels on the daily time frame. Oh, and check out stochastic hanging out at the oversold region!
Will the euro soon regain its losses against the pound? EUR/GBP has yet to pop up hesitation candles, so y’all probably have enough time to whip up your trading plans if you’re plannin’ on buying the euro.
But if you’re not a fan of the common currency, then you could also short at current levels and ride the euro’s demise on the shorter time frames until you see the earliest signs of a pause or rally exhaustion. Whichever strategy you choose, make sure you practice good risk management when you execute them!