Whether you like trading short-term setups or longer-term time frames, I got yo back with a range play on USD/CAD and a potential breakout on EUR/JPY. Check them out, yo!
Range traders huddle up! USD/CAD is having trouble breaking below 1.2850, which isn’t surprising since it lines up with a mid-range support on the 1-hour chart.
Stochastic is flashing an oversold signal, so I won’t be surprised if the bulls soon step in.
You could buy at the earliest signs of a bounce if you’re one of them dollar bulls. If you think that the dollar will continue to weaken against the pound, though, then you could also wait for a break below the mid-range support and the 100 and 200 SMAs before you jump in.
Whichever bias you choose to trade, make sure you practice good risk management when you execute your trades!
Breakout alert! EUR/JPY had just broken below what looks like a head and shoulders pattern on the daily chart. Not only that, but the 100 SMA has also just crossed below the 200 SMA!
As the School of Pipsology tells us, a downside breakout could be as strong as the distance between the “neckline” and the head, which is about 700 pips in this case.
Think the euro is about to lose more pips against the yen? Shorting at current levels could get you a good reward-to-risk ratio, but waiting for a bit of momentum could still be profitable if you’re not too confident about the current “breakout.”