Happy… almost middle of the month, folks! Whether you’re feelin’ the love for the majors or would rather trade the crosses, I got yo back with these sweet setups on USD/JPY and NZD/CAD!
First up is a nice and simple resistance play on USD/JPY’s daily time frame. As you can see, the pair is about to hit the 111.50 psychological handle that’s close to the 100 and 200 SMA on the chart.
Think the bears will make a move if USD/JPY hits 111.50? Shorting at the earliest signs of bearish momentum is a good idea especially if you aim for the previous lows near 106.50.
If you think that it will be a while before the bulls are challenged, however, then you could also make a play for a retest of the previous resistance closer to the 114.00 levels.
Dollar-trading not your thing? Here’s a setup for ya! NZD/CAD is confined in what looks like a falling wedge pattern that popped up after an uptrend.
Not only that, but the 100 SMA has also crossed above the 200 SMA on the daily chart!
According to the School of Pipsology, patterns like these often lead to trend continuation. If that’s what’s happening here, then a break above the upper trend line could lead to an upside move of about 200 – 250 pips.
If you’re not convinced that the Kiwi will post more gains against the Loonie, then you could also wait for NZD/CAD to bounce lower from the wedge’s resistance and trade a downside move until it hits the pattern’s support.
Whichever bias you’re trading, don’t forget to use wide stops, aight? Currency crosses, especially on higher time frames, tend to be more volatile than the majors. Y’all don’t wanna miss out on big moves because you got stopped out early, do you?