Whattup, forex nerds! Today we’re lookin’ at not one, but TWO trend trades on major dollar pairs. Don’t even think of missing today’s charts!
Remember that trend retracement that we spotted earlier this week? Well, it looks like the bulls still had enough juice to push EUR/USD higher!
Can the 100 and 200 SMAs weaken the euro’s rally? As you can see, the 1.1325 level is also right at a 61.8% Fibonacci retracement AND is just below the descending channel resistance on the 4-hour time frame.
As with most trends, y’all might want to wait for a bit of bearish momentum if you’re betting on further euro losses.
If you’re not convinced that the channel would hold, however, then you could also wait for the pair to break above the 1.1370 levels and trade a possible upside breakout instead.
EUR/USD is sitting at make-or-break levels, fellas. Better watch this one closely if you don’t want to miss any moves!
If you’re like me and you’ve been crushing on USD/CAD’s uptrend for the last couple of months, then you should know that the pair is about to test the 100 SMA on the daily time frame.
While we wait for the pair to actually hit the potential support, we should also note that the 200 SMA is closer to the long-term ascending channel support on the chart. What’s more, stochastic isn’t flashing any oversold signal just yet!
You can start loading small positions around the 100 SMA if you’re confident that USD/CAD will soon see a bounce.
If you’re more of the conservative type, then you could also wait until the pair hits the 200 SMA closer to the channel support.
Not feelin’ like buying the dollar? That’s alright, you can also watch out for a possible downside breakout, or wait for countertrend trade opportunity.
Whichever bias you’re trading, make sure you practice good risk management decisions in your trade execution!