Who’s up for trading swing trades this week? I hope you are, because I’ve got hot forex trade opportunities on USD/CAD and GBP/JPY that you wouldn’t want to miss!
USD/CAD is lollygagging just above the 1.3150 mark, which is right around a rising channel support that hasn’t been broken since mid-April. Not only that, but it also lines up with the 200 SMA support on the chart!
Buying at current levels would take advantage of the oversold stochastic signal and get a sweet reward-to-risk ratio if the pair ends up going back to its 1.3350 previous highs.
If you’re one of them dollar bears, though, then you could also wait for a break below the support levels that we’ve identified and wait for a retest of the 1.2950 previous lows.
Whichever bias you choose to trade, make sure you practice good risk management, aight?
GBP/JPY is sporting what looks like a shooting star on the daily time frame.
What makes the setup more interesting is that the reversal candlestick popped up just when Guppy was testing a broken trend line AND is right around the 100 and 200 SMAs. The overbought stochastic signal is just the cherry on top of this sweet bearish sundae.
Shorting at the earliest signs of bearish momentum could get you a pip or two (or three hundred) especially if you aim for the previous lows near 144.50.
Just keep your stops wide, aight? Remember that yen crosses and longer time frames like these charts tend to see crazy volatility with its one-directional moves. Make sure you don’t get stopped out because of overly tight stops!