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Resistance alert! Looks like EUR/USD has formed a possible ascending triangle after hitting an ascending channel resistance on the 1-hour time frame.Will the euro break higher and extend its uptrend against the dollar? Bulls can buy near the pair’s current levels as it lines up with the triangle and mid-channel support as well as the 200 SMA on the chart.
But what if the euro retests its channel support first? Once EUR/USD clearly breaks below its mid-channel and 200 SMA support, then you could look into targeting the channel support closer to 1.1750.
Whichever bias you end up trading, make sure you know all about EUR/USD’s daily average volatility so you’ll have a better idea of where to place your entry and stop loss levels!
CAD/JPY: 4-hourfakeout? Take note that the pair is sporting a bullish divergence on the 4-hour time frame.
If the bulls decide to not mind that CAD/JPY is a few pips below its range support, then we could be looking at a retest of the 80.00 mid-range or 80.50 range resistance levels.
But if CAD/JPY continues to make new weekly lows, then the bears could attack and drag the Loonie back down to the 79.00 major psychological handle or the 78.60 previous support area.