Who’s ready to trade the comdolls today? I hope you are, because these forex trade opportunities on GBP/AUD and CAD/JPY are too good to miss!
First up is a nice range play on CAD/JPY. As you can see, the pair is having trouble hitting and trading above the 84.00 major psychological handle.
What makes the setup more interesting is that stochastic is flashing an overbought signal on the 1-hour time frame.
If 84.00 holds as resistance, then we might see a move back to the 83.25 mid-range level, if not the 82.50 range support.
If the pair breaks above 84.00, however, then we could be in for a trip to the 84.50 and 85.50 previous areas of interest in the higher time frames.
Which way do you think the Loonie will go? Watch this one closely, brothas!
Here’s one for my trend-trading friends out there! Remember that channel support that we spotted a couple of days back? Well, it looks like the bulls did a pretty decent job defending the 200 SMA!
Thing is, GBP/AUD is now back to testing the 200 SMA near the ascending channel support. I’m seeing a bunch of green candlesticks around the area but not enough momentum to inspire a bounce.
Going long at the earliest signs of bullish momentum could still give you a good reward-to-risk ratio especially if you think that the pound will extend its rally against the Aussie.
If you’re one of them pound bears, though, then you might want to wait for a convincing break below the 200 SMA before you jump in on a potential downside breakout.
Whichever bias you’re trading this week, make sure you’re using cool risk management practices when you execute them trading plans!