Whattup, mid-week traders!
Today we’re looking at not one, but TWO swing trade setups on the 4-hour time frames.
Guppy bears are hard at work today as they defend the big 140.00 psychological handle from the bulls.As you can see, GBP/JPY hasn’t successfully traded above the level since late July. Of course, it doesn’t hurt that Stochastic is partying in the overbought area.
Think the pound will lose pips to the yen in the next trading sessions?
Shorting at current levels and then setting your stops just above the range resistance would yield a tight reward-to-risk ratio especially if you aim for the range support near 138.25.
I spy with my eye a reversal in the making!
See, AUD/CAD is now trading below the 100 and 200 SMAs, something the pair hasn’t done since mid-April.And then there’s the 100 SMA crossing below the 200 SMA, which is convenient for the bears who are also trading the pair’s moves inside a descending channel on the 4-hour time frame.
The .9435 previous lows is a good initial target if you’re trading AUD/CAD’s downtrend until it ends.
If you think that the bulls will soon go back in the game, however, then you can also wait for AUD/CAD to break above the channel and aim for the previous highs near .9650.