EUR/USD is having trouble making new highs above 1.1100, which isn’t surprising since the level lines up with a descending trend line that has been keeping euro bulls away since the start of the year.
Will the trend line hold again this time? Or will bulls finally have enough momentum to break above the resistance?
Take note that MarketMilk moving averages currently point to EUR/USD’s daily time frame trends being “bullish.” Heck, the longer-term MAs are even flashing “bearish but possibly weakening!”
Watch this one closely to see how the pair reacts to the trend line. Shorting at the earliest signs of bearish momentum would give you a good reward-to-risk ratio especially if you aim for the yearly lows near 1.0900.
Think EUR/USD is due for an upside breakout instead? You might want to wait until it makes a clean break above the 200 SMA before you buy the euro like it’s Airpods Pro.
Whichever bias you choose to trade, make sure you’re practicing your best risk management moves like your Black Friday budget depends on it!
CAD/JPY: DailyRemember that Fib play that we spotted a few days back? Well, it’s go time for the bulls! CAD/JPY has hit the 81.50 level that lines up with a 61.8% Fib retracement and 100 SMA.
Oh, and have you noticed that it’s near a broken descending channel resistance? Not only that, but the current levels also line up with an ascending channel support that’s forming on the daily time frame.
A long trade at current levels would set you up for a good reward-to-risk ratio especially if CAD/JPY jumps back to its previous highs near 84.00.
Not feelin’ like buying the Loonie against the yen? You can also wait for the pair to make new weekly lows and aim for the hundred or so pips down to the 79.50 previous support.
Good luck and good trading this one!