It’s Friyay, y’all! Time to get your last-minute pips in by checkin’ out these hot trend trade opportunities on USD/CAD and CHF/JPY. Get ’em while they’re hot!
Yen bulls huddle up! CHF/JPY is having trouble breaking above the 114.00 major psychological handle, which is right smack at a support-turned-resistance part of a falling channel on 1-hour time frame.
What makes the setup more interesting is that stochastic is also flashing an overbought signal. Think this will lead to more losses for the franc?
Shorting at current levels could get you a decent reward-to-risk ratio especially if you aim for the previous lows near 113.00 and keep your stops just above the channel.
Just make sure you practice good risk management decisions, aight? After all, currency crosses like these tend to see more volatility than the majors!
Here’s a nice and simple trend play for ya! USD/CAD is fast approaching the 1.2650 level, which happens to line up with a 50% Fib AND rising trend line support near the 100 and 200 SMAs. What’s more, stochastic just hit oversold territory!
Buying around 1.2650 could get you decent pips especially if you aim for the previous highs near 1.2925 and place your stops just below the 200 SMA.
If you’re not a fan of the Greenback, though, then you could also wait for the pair to break below said support levels and maybe drop below 1.2600 before placing your breakout bets. In this case, you could aim for the support area between 1.2450 – 1.2500 or until we see a support level hold.
Good luck and good trading, fellas!