Who’s ready to trade the euro? I hope you are because these trend and range setups on EUR/USD and EUR/CAD are too good to miss. Check them out!
EUR/CAD is on its way to the 1.4700 mark, which is right smack at a range resistance on the 4-hour time frame.
What makes the level more interesting is that 1.4700 is also around a falling trend line resistance seen on the higher time frames.
Are the bears waiting at the level? Shorting at the earliest signs of bearish momentum would give you a good reward-to-risk ratio especially if the 1.4700 holds as range resistance or if trend traders haven’t gotten enough of shorting EUR/CAD.
Not convinced that EUR/CAD will head lower? You can also wait for a break above the trend line we’ve identified and trade a potential trip to the 1.4850 previous area of interest.
Whichever bias you choose to trade, make sure you place a wide enough stop to accommodate EUR/CAD’s usual volatility.
Because what do we say to the god of “you-used-a-tight-stop-so-Imma-punish-yo-irresponsible-behind-with-volatility?”
EUR/USD: DailyEuro bulls recently held the fort and pushed EUR/USD above the channel support on the daily time frame.
Can they maintain their momentum all the way to the 1.1150 channel resistance area? As you can see, 1.1150 lines up with the 100 SMA and previous area of interest on the daily chart.
The pair is still a couple of pips away from the resistance area, so you still have time to design a trading plan if you’re planning on jumping on EUR/USD’s longer-term downtrend.
If you’d rather take advantage of the current bullish momentum, though, then you can also buy at current prices and bail at the 1.1150 level or at the earliest signs of weakening momentum.
Good luck and good trading, yo!