Can you believe we’re already into the middle of the month? See if you can catch some pips with these hot setups on USD/CAD and EUR/AUD!
First up is a nice and simple trend play on USD/CAD. The pair just popped up what looks like a long-legged doji right at the 1.3250 minor psychological handle.
As you can see, the level has been serving as area of interest from way back in March 2016. But this time around, it’s also right around a rising channel support AND the 100 and 200 SMAs on the daily time frame. Oh, and check out that sweet bullish divergence on the chart!
Buying at current levels could get you a good enough reward-to-risk ratio especially if you think that the Greenback would kick the Loonie’s butt in the next couple of days. But if you’re one of them Loonie bulls, then you could also wait for a downside break before entering any orders.
If you’re not into trading the dollar, then this setup is for you. EUR/AUD broke above a descending channel earlier this month but found resistance at the 1.5200 area.It’s currently headed for the 1.4550 level, which has not only served as support and resistance in the past, but is also near a 38.2% Fib retracement AND a retest of the broken channel resistance.
Think we’re about to see a break-and-retest situation in the making? Stochastic is already chillin’ like a villain in the oversold territory, so you can bet your pips (with proper risk management, of course) that other bulls are watching too. Keep your eyes peeled for a possible bounce, brothas!