Whether you like trading short or long time frames, I got yo back with these hot forex trading setups on USD/CAD and EUR/CAD.
Breakout alert! EUR/CAD just broke above a falling channel that has been keeping the pair in check since mid-December. But are we really looking at a breakout or a fakeout?
As you can see, the euro has also faked out last January 4 before it dropped like a rock to make new lows. And if the bearish divergence has any weight, then we might see another round of selling for the euro. On the other hand, the 200 SMA resistance could now serve as support for the pair.
Selling at the earliest signs of a downtrend could make for a good trade especially if you aim for the previous lows near 1.4800. But if the pair starts making new weekly highs, then you might want to aim for the 1.5100 or even the 1.5200 areas of interest.
Here’s a simple support and resistance play for you! USD/CAD looks like it has bounced from the 1.2450 psychological handle, which lines up as a previous support level for the pair.
Stochastic looks like it’s just about to leave oversold territory, so y’all might still have room to jump in on a possible bounce to the 1.2680 or 1.2900 levels. Of course, the pair could always drop back down to its 1.2150 lows.
Whichever bias you choose to trade, make sure you use wide stops and good risk management practices, aight?