It’s all about the Loonie on today’s canvas, as we revisit new forex trade opportunities on CAD/JPY and AUD/CAD’s charts. Get ’em while they’re hot!
AUD/CAD is having trouble sustaining its bearish momentum after finding resistance at the .9150 handle.
What makes the level interesting is that it also lines up with a 38.2% Fibonacci retracement and is around the trend line that the pair had broken a few days back. Oh, and check out stochastic chillin’ like a villain in the oversold region!
Are we looking at a break-and-retest play in the making? Buying at the earliest signs of bullish momentum would get you on the uptrend at a decent price especially if AUD/CAD pops back up to its .9200 or even .9400 previous areas of interest.
If you think that the “breakout” is actually a fakeout, however, then you could also short at current levels and bail at the first signs of stronger support.
It’s go time for CAD/JPY bears! As you can see, the pair is hanging out at the 81.50 levels, which is right below a long-term triangle resistance AND the 100 and 200 SMAs on the daily time frame.
Shorting at current levels would give you a good reward-to-risk ratio especially if the descending triangle on the chart ends with a break below August and September’s lows.
Think CAD/JPY is in for a rally instead? You might want to wait for a break above the trend line and SMAs that we’re looking at and aim for the 83.00 and 84.00 areas of interest.
Good luck and good trading this one!