Welcome to a brand spankin’ new trading week, brothas! Let’s get you started with these hot forex trend plays on Cable’s daily chart and CAD/JPY’s 4-hour time frame!
Someone holler at Huck because this one is too good to miss! GBP/USD is having trouble breaking below the 1.3000 major psychological mark, which isn’t surprising since it’s also right smack at a rising channel, 61.8% Fib, and 100 SMA support on the daily time frame.
With stochastic already chillin’ like ice cream fillin’ on oversold territory, you can bet your neighbor’s cat that other bulls are already watching this one.
Buying at the earliest signs of a bullish momentum would give you a good reward-to-risk ratio especially if you aim for the previous highs near 1.3600 and place your stops below 1.2900.
Just make sure you use wide stops when trading higher time frames like these, aight? We never know how much volatility this pair can see before we see a directional move!
Here’s one for my currency cross homies out there! CAD/JPY is fast approaching the 89.50 levels, which is right around a trend line, 38.2% Fib and 200 SMA support levels. Not only that, but the area has also served as resistance back in July!
Will Loonie bulls defend the support area this week? Or will the bears push the pedal to the metal and drag if back to the 87.50 or even the 85.50 levels?
Stochastic is currently favoring the bulls as it hangs near the oversold territory, so y’all should watch out in case the bulls step in today. But if the pair breaks below the support area and starts gaining bearish momentum, then you gotta be ready with your breakout strategies!