Loonie traders huddle up! Let’s kick off the week with not one but TWO Loonie setups. Check out CAD/JPY and EUR/CAD’s charts!
First up is a nice and simple range play on CAD/JPY’s daily time frame. As you can see, the pair is currently testing the 88.50 handle, which has been serving as resistance for the pair from all the way back in November.
Stochastic is already in the overbought territory so you can bet your pips (with proper trade management, of course) that Loonie bears are already watching this one.
But before you short the comdoll like there’s no tomorrow, take note that last Friday’s candle looks pretty strong. That is, it might be a while before the bears muster enough muscle in their hustle and force a resistance bounce.
Watch out for the earliest signs of a bearish momentum, will ya? Or if you’re one of them Loonie bulls, make sure you stick around and are ready with your breakout strategies in case this week is the week the pair finally makes new 2017 highs!
Here’s one for my trend-lovin’ homies out there! A couple of days ago we identified a possible bounce area for EUR/CAD. Well, guess what? The odds in favor of the bulls are piling up!The pair is lollygagging at the 1.4700 major psychological handle, which is right around a previous resistance area, rising trend line, and the 100 SMA.
Oh, and if you slap on your Fibs, you’ll see that the pair is also near the 50% Fibonacci retracement. The cherry on top of this sweet setup is a bullish divergence on the daily time frame.
Think the euro will extend its gains against the Loonie? A bounce higher could propel the pair to its previous highs near 1.5200. On the other hand, a break below said support levels could drag the pair to its 1.4400 area of interest.