It’s Friyay, y’all! Ready to make your last-minute pips this week? Check out these sweet retracement plays on CAD/JPY and EUR/CHF!
After finding support near the 1.1620 area, EUR/CHF looks set to retest the 1.1650 minor psychological handle.
As you can see, the level also lines up with not only the trend line that it had broken, but also an area of interest near the 38.2% – 50.0% Fibs and SMA crossover.
Think the euro is about to start its downtrend? Shorting at the earliest signs of a bearish momentum is a good idea if you believe that the common currency will hit new monthly lows over the next couple of days.
If you’re one of them euro bulls, though, then you could also wait for the pair to trade above the crossover that we spotted before you place your long trades.
CAD/JPY encountered resistance around the 85.60 levels and is now heading fast towards the 84.25 – 84.50 area that happens to line up with the 38.2% – 50.0% Fibs and an SMA crossover.
With stochastic hitting oversold levels, you can bet your pips (with proper risk management, of course) that other bulls are already watching this one.
You could buy at 84.50 if you think that the Loonie will encounter bullish pressure around the area, while the more conservative traders could wait for a dip to the 84.00 handle near the broken channel resistance before jumping in.