Whether you like trading short or long-term forex setups, I got yo back with these trend and countertrend plays on EUR/CHF and CAD/JPY. Check ’em out!
Trend traders huddle up! EUR/CHF has just landed on the 1.1950 minor psychological area, which is right smack at a falling channel resistance on the 1-hour time frame. What makes the level more interesting is that it’s also near the 100 and 200 SMAs.
With stochastic flashing an overbought signal, you can bet your pips (with proper risk management, of course) that at least some bears are on standby.
Think the euro is in for more losses against the franc? Shorting at current levels could give you a cool reward-to-risk ratio especially if you aim for the previous lows near 1.1850.
If you’re one of them euro bulls, though, then you could also wait for a break above the channel and aim for a possible retest of the 1.2000 major psychological mark.
Can the Loonie extend its gains against the yen? CAD/JPY has bounced by at least 500 pips from its 2018 lows and now it looks like the bears have a chance to pounce.
See, the pair is about to hit the 87.00 mark, which is near a mid-channel resistance on the daily time frame.
Shorting at the earliest signs of bearish pressure could get you a pip or two (or a hundred) if you believe that the Loonie will soon retrace against the yen.
But if you think that CAD is actually headed back to its previous highs near 92.00, then y’all better draft your trading plans and prepare for a possible break above the mid-channel line!
Whichever bias you choose to trade, make sure you keep them risk management skills tight, aight?