USD/CAD looks ready to bounce from 1.3160, which isn’t surprising since the level lines up with not only a previous resistance but also a 50% Fib retracement, 100 SMA, and trend line support on the 1-hour time frame.
Buying at current levels would make for a good reward-to-risk trade especially if you place your stops just below the trend line and USD/CAD makes new monthly highs in the next trading sessions.
Feel like shorting the Greenback instead? That’s fine, too. Just make sure that the pair has clearly broken below the trend line before you start putting them short positions.
Whichever bias you choose to trade this week, make sure you’re following your trading plan and that you’re managing your risk!
I spy with my eye a potential reversal in the making!
Can AUD/JPY extend its uptrend? Buying at the earliest signs of bullish momentum would get you in at a good price if you believe that the pair would revisit its December highs.
Think we’re looking at a low key downside breakout instead? That’s also possible. Check out the lower time frames for signs that AUD/JPY is in for a longer downtrend and then start building your breakout positions if your indicators point to a longer bearish momentum.
Good luck and good trading this one, brothas!