Which of these pairs will extend their trends?
Check out these charts and tell me what you think.
EUR/USD is flirting with the 1.0925 – 1.0950 area, which lines up with a channel support that has been keeping the bears in check since the start of the month.What makes the setup interesting today is that it’s also around the 100 SMA on the 1-hour time frame.
A long trade at current levels would give you the best entry if EUR/USD ends up extending its uptrend and making new April highs.
Not convinced that the euro can make more pips against the dollar? You can also wait until the pair breaks below the channel and aim for previous areas of interest closer to 1.0900 or 1.0850.
A couple of days ago we identified the possibility of AUD/CAD extending its upswing all the way to a descending trend line resistance that has been solid since March 2018.
Well, it’s now go time for the bears!Not only has AUD/CAD touched the trend line AND the 100 and 200 SMAs, but the daily chart is now also sporting a (not so) hidden bearish divergence.
Shorting at the first signs of bearish momentum would yield a good reward-to-risk ratio especially if the Aussie falls back down to its March lows against the Loonie.
If you’re one of them Aussie bulls, however, and if you believe that AUD/CAD will finally break above the trend line, then you can wait for an actual breakout and then start placing them long positions.
Whichever bias you end up trading, make sure you’re sticking to your trading plans like it’s yo momma’s banana bread recipe!