We’re lookin’ at short-term forex trend opportunities today, brothas! Get your USD/JPY and EUR/CAD charts ready so we can start getting pips!
EUR/CAD is consolidating around the 1.5500 major psychological area, which isn’t surprising since it’s also around a rising channel AND the 100 SMA support on the 1-hour time frame.
What makes the setup more interesting is that stochastic is also in the oversold territory. Talk about the stars lining up!
A long trade at current levels could get you in on the uptrend at a sweet spot. If you’re no fan of the euro, though, then you could also wait for a break below the support levels we’ve identified and trade a reversal instead. Just make sure you leave enough room for currency cross volatility when placing your stops!
Currency crosses not your thing? Here’s one for ya! USD/JPY is having trouble breaking above the 110.00 area, which lines up with the falling channel and 200 SMA resistance levels on the 1-hour chart.
With stochastic chillin’ like a villain on the overbought region, you can bet that other bears are also watching this one.
Shorting at the earliest signs of bearish momentum could get you a good reward-to-risk ratio especially if you aim for the previous support near 109.00. Of course, you could also trade an upside breakout if you don’t believe the dollar will extend its downtrend.
Whichever bias you choose to trade, make sure you practice good risk management in your execution!