It’s all about the Loonie on today’s canvas, as we explore potential retracement opportunities on AUD/CAD and EUR/CAD. Which setup would you rather trade?
A couple of days ago we identified 1.4475 as a potential resistance when we saw EUR/CAD find support at the 1.4330 levels on the 1-hour time frame.Well, it’s almost go time for the bears! As you can see, the pair is less than 50 pips from the area that has served as support back in January.
Will the bears step in? Shorting at the first signs of bearish momentum would get you in at a good spot if you’re planning to short the euro against the Loonie. The 1.4330 support is a good target though areas of interest near 1.4365 can also work for your shorts.
But what if the bulls keep calm and carry on? If EUR/CAD blows through the Fib retracement levels and the 100 SMA crosses above the 200 SMA, then you’ll want to prepare for a scenario where the pair jumps back up to 1.4570 or even the 1.4650 levels.
If you’re not feelin’ like trading the euro these days then this one is for you!AUD/CAD hit resistance at the .8800 major psychological handle, which isn’t surprising since it lines up with a 50% Fib retracement, 100 SMA, and a trend line resistance on the 1-hour time frame.
Shorting at current levels would still yield you decent pips especially if AUD/CAD drops back to its .8730 February lows.
If you’d rather buy the Aussie against the Loonie, however, then you might want to wait until the bulls blast above the trend line that we’re seeing. .8850 is a good initial target though you can also aim for .8900 if the bullish momentum is strong enough.
Good luck and good trading this one!