ICYMI, we’re trading the last Friday of the last full week of the year!
End the week on a strong note by taking advantage of not one but TWO short-term dollar opportunities.
After falling sharply in late November and in early December, dollar bears are trying to squeeze in a couple more pips by containing USD/CAD inside a slow and steady descending channel.Dollar bears have another opportunity on their hands with USD/CAD hanging out at the 1.2750 levels that’s also around the 100 and 200 SMAs AND a descending channel resistance. Talk about the stars lining up!
Shorting at current levels would yield a hot risk ratio especially if USD/CAD drops back down to its 1.2700 December lows.
Meanwhile, those who are feelin’ the love for the Greenback can wait for a clear break above the 200 SMA and maybe even an SMA crossover before trading a breakout and aiming for areas of interest like 1.2830, 1.2860, and 1.2900.
Remember that range play that we identified a few days back? Well, USD/JPY bulls and bears are over the pattern!Today USD/JPY just hit resistance at the 100 SMA that lines up with a previous support and resistance level on the 1-hour chart.
Think the dollar is in for more losses against the yen? Selling at the first signs of bearish momentum would make for a good play if you’re aiming for December’s lows near 102.90 and your stops are just above the 103.75 broken range support.
But what if USD/JPY bulls finally wake up today?
If USD/JPY trades above the 100 SMA and busts through the 103.75 and 200 SMA resistance levels, then we could see the pair pop back up to the 104.00, 104.25, and 104.50 key inflection points.