Who’s up for trading currency crosses today? I hope you are, because these forex trade opportunities on EUR/GBP and CAD/JPY are too good to miss!
CAD/JPY is lollygagging around the 85.00 major psychological handle, which is also right around the 100 and 200 SMAs on the 4-hour time frame.
What makes the setup more interesting is that it’s also near the bottom of a rising channel. Think the Loonie is in for more gains against the yen?
Buying at current levels could get you a decent reward-to-risk ratio especially if you believe that the pair would shoot up to the 86.50 area. Just make sure to use wide stops so you don’t get caught in wild volatility!
EUR/GBP looks like it’s taking a breather from the “breakout” that we spotted a few days back!
The .8950 psychological mark is a good level to watch since it’s right around the 38.2% and 50% Fib retracement levels and well within the rising trend line and 100 SMA support on the 4-hour chart.
The current bearish wave is still alive and kicking, so you might want to wait for a bit of bullish momentum before placing your long trade orders. You wouldn’t want to get caught in a longer-term fakeout, would you?