Whether you’re into range plays or trend-trading, I got yo back with these forex trade opportunities on GBP/AUD and CAD/JPY. Get ’em while they’re hot!
CAD/JPY just bounced from the 83.75 area, which lines up with the 200 SMA on the 1-hour chart AND an ascending channel support that hasn’t been broken since the start of the month.
Does the bounce herald another bullish run for the Loonie? A long trade at current levels would give you a good reward-to-risk ratio especially if you aim for the previous highs near 84.50.
If you’d rather short the Loonie, however, then you could also wait for the bullish momentum to fade away and wait for a break below the channel that we’ve spotted.
Whichever bias you’re trading today, make sure to use wide stops on volatile currency crosses like these!
GBP/AUD is testing the 1.8500 major psychological handle, which isn’t surprising since it lines up with a range resistance that has been holding since April 2018. Wowza!
Can the bears defend the resistance for another day? Shorting at a bounce would give you a cool R:R if GBP/AUD hits range bottom near 1.7300.
I’m not seeing any bearish pressure yet, though, so an upside breakout is still very much on the table. If it does break, higher, then the areas of interest near 1.8900, 1.9000, and 1.9100 could serve as potential profit targets.
What do you think? Will we see a breakout today? Or will the bears get enough muscle to drag the pair back to its range?