Who’s up for trading shorter time frames today? If you are, then you won’t want to miss these hot forex trade opportunities on GBP/USD and CAD/JPY!
Remember that downtrend play that we worked on last week? Well, it looks like the bears were in the mood to play!
Right now Cable is back to the 1.3200 major psychological handle, which is near the 200 SMA and the falling channel resistance on the 1-hour time frame. What’s more, stochastic is about to hit overbought status while flashing a low key bearish divergence signal.
Think the pound is in for more losses against the Greenback? Shorting at current levels could give you a good reward-to-risk ratio especially if you aim for the previous lows near 1.3025. Just make sure you don’t keep your stops too tight, aight?
I spy with my eyes a possible breakout in the making! See, CAD/JPY is confined in a potential ascending triangle on the 1-hour time frame.
The 84.40 mark is serving as resistance, which isn’t too far from the 84.00 trend line that’s currently supporting the Loonie.
You could buy at current levels if you believe that the Canadian dollar will gain more pips on the yen and even break above this week’s highs. But if you think CAD/JPY is headed lower, then you might want to wait for a downside breakout before pulling the trigger on your shorts.
Whichever bias you choose to trade, make sure you’re practicing good risk management in your execution!