Whattup, forex brothas!
Looking for trends to trade?
CAD/JPY is having trouble trading above the 90.70 high that had held last week. In fact, I’m seeing tons of long wicks around the level right now!
With Stochastic telling us that the Loonie is “overbought” on the 1-hour time frame, you can bet that some bears are already watching this one.
Shorting at current levels or at the first signs of bearish momentum is a good play if you think that CAD/JPY will drop to the 90.25 zone near the channel support and the 100 SMA.
Meanwhile, bulls can wait and see if CAD/JPY can make new May highs this week. A long trade as soon as the pair makes new highs could make you tons of pips especially if the bullish momentum takes the Loonie to its 2018 highs.
Not a fan of countertrend trades? Check out EUR/GBP hanging just under the .8600 major psychological handle.As you can see, the current prices line up with an ascending channel support that EUR/GBP bulls and bears have been respecting since mid-March.
Now that Stochastic is in the oversold zone, euro bulls can start loading them long positions until EUR/GBP pops back up to its April highs.
Meanwhile, the bears can look forward to a possible break below the current trend line support. A downside breakout could lead to a 100-pip drop to April’s lows, ya know?
Watch this one closely!