Let’s start off with a nice and simple trend play on USD/CAD. The pair is having trouble breaking below the 1.3330 zone, which isn’t surprising since the level has been playing support for most of the month anyway.
What makes it interesting this time is that it’s right smack at a rising channel support on the chart on the 1-hour time frame.
Buying at current levels could get you a good reward-to-risk ratio especially if you aim for at least the 1.3400 psychological mark. Be careful of sellers just above 1.3350 though, as it’s near the mid-channel line.
Oh, and don’t place your stops too close to the current levels since we can see how this baby can fake us out with false breakouts.
Here’s a break and retest action for ya! AUD/JPY has bounced from its 84.00 lows and is heading fast for the channel support that it broke earlier this week.Will the bears jump in at the 85.50 psychological handle?
Or perhaps the 86.00 MaPs that also lines up with the 61.8% Fib?
Or how about the 86.50 mark that’s nearer to the 200 SMA and broken channel support?
Stochastic is already flashing an overbought signal, so y’all better get your trading plans ready in case Aussie bears or yen bulls step up their game!