Whattup, yo! Ready for some mid-week trading?
Check out these setups and see if you can position your trades before these pairs see more action!
Earlier this month, EUR/GBP had broken a downtrend in favor of a spike-y uptrend on the 1-hour time frame.Trend traders should know that the euro is a hair’s breadth away from the .9025 zone that lines up with a channel support that’s juuuust above the 200 SMA.
Buying the euro at the first signs of a bounce is a good idea if you believe that the common currency will extend its gains against the pound. The .9150 December highs is a good initial target if you’re one of them euro bulls.
Feel like shorting EUR/GBP instead? You’ll have to wait until the pair breaks below the channel AND the 200 SMA and then target key inflection points like .8985, .8950, or .8880 to get decent pips.
With Stochastic flashing them overbought signals, you can bet that Loonie bears are watching for a trip back inside the range.
If CAD/JPY dips back below the 81.25 levels, then we could price in a possible trip back to the 81.00 mid-range or 78.50 range support levels.
New weekly highs for the Loonie, however, could propel CAD/JPY to the 83.00 and 84.50 previous areas of interest.
Good luck and good trading, errbody!