It’s all about the Loonie on today’s canvas, as we play around with forex trade opportunities on CAD/JPY and EUR/CAD. Get ’em while they’re hot!
First up is a nice and simple ascending channel on the daily time frame.
As you can see, CAD/JPY is sporting what looks like a tweezer bottom around the 85.00 major psychological area.
What makes the 85.00 handle interesting is that it’s also near the 100 and 200 SMAs as well as a channel retest on the chart.
Oh, and check out that bullish divergence in the making!
Think the Loonie will extend its uptrend against the yen? The 90.00 previous resistance area is a good level to watch if you’re planning on buying this one.
Just make sure you widen your stops, will ya? After all, currency crosses like these – especially on longer time frames – can see volatility like nobody’s business!
EUR/CAD just bounced from the 1.5100 level, which isn’t surprising since it marked a falling trend line and 100 SMA retest on the daily time frame.
Is the euro headed for its previous lows near 1.4800? If it DOES find support at the level, then we could be looking at a descending triangle in the making.
The pair has a couple of hundred pips yet before it hits support, so y’all still have time to whip up trading plans if you’re planning on trading this one.
Make sure you practice good risk management when you execute your plans, aight?