Wassup, forex brothas!
Thinking of trading any of these setups?
Loonie bulls are doing a good job of keeping CAD/JPY just under the 88.00 major psychological handle!Can they gain momentum in the next couple of hours? As you can see, CAD/JPY is also sitting on the trend line support and is close enough to the 100 SMA for the moving average to still serve as support.
A long trade at the first signs of an upswing is your best bet for a decent risk ratio. You can target April’s highs if you’re planning on a quick-ish trade but you can also hold part of your long positions until CAD/JPY shows signs of reversing.
Meanwhile, Loonie bears can wait for a break below the channel support. Keep an eye on how CAD/JPY reacts to the 200 SMA, though, because we don’t know how much momentum a downside breakout will get once the bears start attacking!
If dollar trading is more your thing, then you’re gonna like that USD/CHF bulls are respecting a trend line support as well as the .9350 minor psychological level on the 4-hour chart.Watch out for some bullish candlesticks, which would mean that the trend line, 100 SMA, and 50% Fib retracement are holding as support.
Buying at current prices and placing stops just under the 100 SMA is a good idea if you believe that the dollar will return to its March highs against the franc.
If you’re not too impressed with the Greenback, though, then you can also wait for a clear break below the trend line. .9300 looks like a good short-term target but you can also aim for .9225 if you’re predicting a reversal for USD/CHF.