Can’t get enough of volatility?
Support alert! EUR/CAD is testing a trend line support that’s hanging out juuust above the 100 SMA on the 1-hour time frame.Can the euro extend its uptrend against the Loonie? Buying at current levels would yield a cool risk ratio especially if EUR/CAD ends up breaking its 1.5575 resistance in the next trading sessions.
If you’d rather short the common currency against the comdoll, though, then you can also wait for a clear break below the ascending triangle support and aim for inflection points like the 200 SMA or the 1.5410 previous area of interest.
AUD/JPY is having trouble making new highs after rising sharply in the last two weeks.
Specifically, the pair is forming what looks like a descending triangle as it continues to find resistance along a descending trend line. What’s more, the 100 SMA is about ready to cross below the 200 SMA!Shorting at a retest of the trend line resistance is your best bet if you’re seeing future weakness for the Aussie.
Take note that triangle breakouts can be as strong as the height of the base of the triangle, which means we got about 130 pips worth of volatility in case AUD/JPY breaks out of the pattern.
But what if the triangle is actually a bullish pennant and AUD/JPY ends up extending its uptrend?
Watch out for an upside break, which could boost the Aussie to at least its November highs.