Wassup, dawg! Let’s take a look at some setups on the currency crosses. I’ve got a range play goin’ on in EUR/CAD and a channel on GBP/CHF that you may want to take a look at.
Back in October 9 we were lookin’ at GBP/CHF’s downtrend as a gift that kept on giving. However, we also said that there’s a chance of an upside breakout.
Anyhow, if we take the most recent price action into account, we can see that the channel resistance is turning out to be a support area with forex bulls sorta using the 100 SMA as support.
Note that stochastic has just landed on oversold territory, so y’all might want to put on your long trades at the earliest signs of a bullish momentum. And as mentioned earlier this week, clearing the 1.2960 resistance is a good sign of an upside breakout.
If the pair breaks below today’s low, however, then it’s also possible that the pair could go back down to its downtrend. In this case y’all might want to take advantage of the “fakeout” and keep trading the downtrend.
Looks like the bulls came out to party this week as EUR/CAD broke above a mid-range resistance near 1.4750. If you wanna take advantage of the pair’s bullish momentum, then y’all gotta start aiming for the 1.4850 or 1.5000 areas of interest.Do note, however, that stochastic has already hit overbought levels, so be ready to bail on your longs and get ready to short if the euro starts bouncing from the 1.4850 area. And if the pair does show signs of bearishness, then you might want to aim for the 1.4500 – 1.4600 levels.
In any case, make sure you practice good risk management when executing your trades, a’ight?