I hope you’re in the mood to trade comdoll crosses today, because these forex trade opportunities on CAD/JPY and AUD/CAD are too good to miss!
Range playas huddle up! AUD/CAD is currently testing the .9400 major psychological handle, which lines up with a mid-range support on the 1-hour time frame.
What makes the setup more interesting is that stochastic is flashing an oversold signal.
Will we see the Aussie bounce against the Loonie soon? Buying at the first signs of bullish momentum could still get you a pretty good reward-to-risk ratio especially if the pair pops back up to the range resistance near .9470.
If you’re looking forward to more Aussie weakness, however, then you could also look for a clean break below the .9400 support and aim for the range support closer to the .9325 levels.
Remember that area of interest that we spotted a few days back? Well, it looks like the bears are doing a good job of defending the level!
CAD/JPY is finding a bit of bearish momentum after bouncing from the 84.00 major psychological handle. It also doesn’t hurt that there’s a low key bearish divergence on the daily chart.
Before you short the Loonie like there’s no tomorrow, though, you might want to wait for CAD/JPY to break below its rising trend line support first. As you can see, the uptrend (which might be more visible in the shorter time frames) is still intact.
Waiting for bearish momentum could still give you a good deal especially if a downside break could drag CAD/JPY down to the 82.50 or 81.25 areas of interest.
Feeling bullish for the Loonie? That’s aight, you can still trade a possible trend line bounce on the shorter time frames and exit if or when the support is broken.
Whichever bias you’re trading today, make sure you practice good risk management decisions!