Welcome to a brand spankin’ new trading week, forex brothas! Let’s hit the ground running this week with these sweet setups on the crosses. See what you can make of these setups on AUD/JPY and CAD/CHF!
I spy with my eye a possible breakout in the making! As you can see, AUD/JPY is trading on what looks like a symmetrical triangle on the 1-hour time frame.
What makes the setup interesting is that the pair is currently knocking on the 88.00 handle, which lines up with a previous support level AND the 100 SMA on the chart.
A bounce from the trend line could drag the pair to its previous lows near 87.50 before it sees either a support bounce or a breakout. Meanwhile, a break above the 88.00 area could push the pair to the 88.50 or even 89.00 areas of interest.
Trend traders huddle up! CAD/CHF is finding support at the .7750 psychological area, which isn’t surprising since the level also lines up with a rising channel support AND the 200 SMA on the 4-hour time frame.
Will we see a Loonie bounce this week? Buying at current levels could give you a sweet reward-to-risk ratio especially if you aim for the previous highs near .7900.
Just make sure you place wide stops on currency crosses like these, aight?