Today we’re lookin’ at not one, but TWO trend plays on the currency crosses. Check out these forex trade opportunities, yo!
EUR/CAD is testing the 1.5000 major psychological handle, which is right around the 100 SMA and a falling trend line that hasn’t been broken since early January.
What makes the setup more interesting today is that stochastic is also flashing an overbought signal.
Are we looking at a good opportunity to sell here? The consolidation around the 1.5000 seems to be pointing towards an upside breakout, but the trend line looks intact for now.
Shorting at the earliest signs of a bearish momentum is a good bet especially if you believe that EUR/CAD will extend its downtrend.
If you’re one of them euro bulls, though, then you could also wait for a break above the trend line and maybe even the 200 SMA before you place your bullish bets.
Resistance alert! A couple of days ago we speculated GBP/JPY’s possible reaction to the 200 SMA on the daily time frame.
Well, it looks like the bulls aren’t done yet! As you can see, they’re now testing a falling trend line that has been serving as resistance since the start of 2018.
Can they finally push for an upside breakout? Like in EUR/CAD’s case, shorting at the first signs of trend line bounce here would give you a good reward-to-risk ratio especially if Guppy drops back to its 2019 lows.
Whichever bias you’re trading, know that tong-term and closely-watched setups like these tend to see more volatility on bounces and breakouts. That means y’all better use wide stops if you’re planning on trading this one and other similar setups!