We’re about to end the second full trading week of the year!
Looking for last-minute setups to trade?
No problemo! Check out CAD/JPY finding resistance at the 81.75 zone, which is right smack at the mid-channel and 100 SMA support on the 1-hour time frame.Loonie bulls can buy at the first signs of upside momentum to jump in on the uptrend, or they can wait for a retest of the channel support closer to the 200 SMA for a sweeter reward-to-risk ratio.
Meanwhile, bears can take advantage of the bearish momentum once CAD/JPY breaks its mid-channel support.
Of course, you can probably get more pips if you wait for an actual break below the channel and then aim for previous inflection points like 81.20 or 80.70.
I spy with my eye a trend continuation play in the making!EUR/AUD is chillin’ like a villain just under 1.5700, which isn’t surprising because the pair’s current levels lines up with a 38.2% Fib retracement, 100 SMA, and trend line resistance that hasn’t been broken since late December.
Think the euro will extend its losses against the Aussie?
Shorting at current levels is your best bet if you believe that EUR/AUD will extend its downtrend for another day.
If you’d rather buy the common currency against the comdoll, though, then you’ll want to at least place your orders above the trend line and maybe even the Fib and 200 SMA levels.
Good luck and good trading this one!