Welcome to a brand-spankin’ new trading year, forex brothas!
Think you’re up to trading these pairs?
USD/CAD is taking a chill pill after steadily sliding since mid-September.But wait! Note that USD/CAD hasn’t broken a 4-hour descending trend line just yet. Heck, it’s even respecting the 100 and 200 SMAs!
Dollar bulls who think that the pair would stay in its 300-pip range for a while yet can take advantage of dips to the 1.2700 support and then exit at the mid-range, SMA, or trend line resistance levels.
Meanwhile, USD/CAD bears can look forward to another retest of the trend line resistance. For breakout traders, a clear break below the 1.2700 MaPs could lead to trips to the 1.2500 or 1.2400 previous area of interest.
In case you were too busy counting your Bitcoin gainz, you should know that EUR/JPY is forming a potential ascending triangle on the daily time frame.The School of Pipsology tells us that triangles like this one can see breakouts as strong as the height of the base of the triangle. We’re talkin’ just under 800 pips in this case!
Euro bulls can start whipping them trading plans so you can take advantage of EUR/JPY possibly breaking above the 127.00 MaPs.
Think EUR/JPY isn’t ready to break above the resistance just yet? That’s fine, you can also start selling at the first signs of a bounce and then aim for dips to the 125.00 MaPs or trend line previous support levels.