Welcome to a brand spankin’ new trading week, brothas! Let’s start the week strong with these simple short-term setups on the currency crosses. Check out CAD/JPY and GBP/AUD’s charts!
First up is a nice and simple trend trade on GBP/AUD. As you can see, the pair is having trouble breaking above the 1.6900 major psychological handle, which isn’t surprising since the MaPs lines up with a falling channel resistance AND a 200 SMA resistance on the 1-hour time frame.
The cherry on top of this sweet opportunity is an overbought stochastic signal. But will the bears bite today? Shorting at current levels will give you a good reward-to-risk ratio especially if you aim for the channel support near 1.6700.
If you think that the pound will break higher against the Aussie, though, then you could also wait for an upside break an dim for the previous highs near 1.7000 or 1.7100. In any case, make sure you make good risk management decisions when you do trade your plans!
Breakout traders huddle up! After breaking below a falling channel last week, CAD/JPY has since gone back down to retest the broken channel resistance.
What makes the setup even more interesting is that the 100 SMA has also just crossed above the 200 SMA while stochastic just shot up from oversold territory.
Think the Loonie will soon revisit its highs near 90.50? Buying at the bounce could give you a pip or two (or a hundred) especially if you’re confident of the Loonie’s bounce.
If you think that the yen will soon flex its muscles, though, then you could also wait for the pair to go back to its downtrend and aim for the previous lows near 89.00.