Ready for another round of hot forex setups? We’re talkin’ Loonie today with a break-and-retest situation on USD/CAD and a range play on CAD/JPY. Check it!
After breaking above a short-term range, USD/CAD looks ready for further upside moves. As you can see, the pair is a few pips away from the 1.3485 levels, which is right around the broken resistance level on the 1-hour time frame.
What makes the setup more interesting is that it’s also near a 50% Fib retracement and a low key rising trend line retest on the chart.
Can USD/CAD bulls make good on the upside breakout by extending its bullish momentum? It doesn’t look like the bears are done chomping on the pair just yet, so y’all still have time to draft your trading plans if you’re planning on trading this setup.
If you believe that USD/CAD has already peaked, though, then you could also wait for a break below the 100 SMA and a clear return to the pair’s range before you pull the trigger on your short trades.
Remember that long-term range support that we spotted a couple of days back? Well, it didn’t exactly lead to upside momentum for the Loonie.
If you’re still convinced of the Loonie’s bounce against the yen, though, then you’re in luck!
CAD/JPY is forming a potential morning star pattern on the daily chart. And as you can see, it’s forming right at the 81.00 major psychological handle that also lines up with the range support that we’re watching. Huzzah!
Buying at current levels would get you a sweet reward-to-risk ratio especially if you’re in it for a trip up to the 84.25 range resistance.
Feel like selling the Loonie instead? That’s aight, you can also wait for CAD/JPY to make new monthly lows and trade a potential downside breakout instead.