Whether you like trading short or long-term setups, I got yo back with a short-term trend on EUR/GBP and a long-term triangle on CAD/JPY!
Let’s start of with a nice and simple trend play on EUR/GBP. The pair is finding trouble trading below the .8900 major psychological handle, which isn’t surprising since it lines up with a rising channel support, 38.2% Fibonacci retracement, AND the 100 SMA on the 1-hour time frame. Talk about a triple threat!
Stochastic has already left the oversold territory, however, so there’s less pressure on the bulls to attack. If the pair does see a bounce in the next couple of hours, then we could be looking at a retest of its previous highs near .9000.
But if the bears put some muscle in their hustle and force a downside breakout, then the euro could get dragged back down to its previous support near .8850. Watch this one closely, brothas!
CAD/JPY is lollygagging just below the 89.00 major psychological handle, which is right smack at an ascending triangle resistance on the daily time frame.
The level has been a solid resistance since late 2015, so you can bet you momma’s cat that bulls and bears are watching the area closely. A bounce lower from the level could drag the pair to the 84.50 area of interest, if not the trend line support near 82.00.
An upside breakout, on the other hand, could boost the pair all the way to the 93.00 area of interest or even the mid-2015 highs near 101.00. Yowza!