Welcome to mid-week trading, errbody!
I hope you like them European currencies because we’re lookin’ at not one, but TWO European currency setups today!
Check out what’s happening on EUR/CHF and GBP/CAD‘s charts:
GBP/CAD: 1-hour
Here’s a simple resistance play for ya!
The pound is back at the 1.7125 area that has been serving as resistance since late April.This time around, GBP/CAD is also sporting a bearish divergence. That means Stochastic is also telling us that the pair is overbought on the 1-hour time frame!
Selling at current levels would give you the best risk ratio if you’re confident that GBP/CAD will dip back down to the 1.7100 levels closer to the SMAs.
If you’d rather bet on an upside breakout or a longer-term reversal, though, then you can also place some orders just above May’s highs and then aim for the closest areas of interest near 1.7200 or 1.7275.
EUR/CHF: 4-hour
Countertrend traders huddle up!
EUR/CHF is testing a “neckline” of a double bottom situation. And if that’s not exciting enough, the euro’s current levels also line up with a 100 SMA resistance on the 4-hour time frame!A clear break above the 1.0980 “neckline” would set up EUR/CHF for a trip to the 1.1000 zone near the 200 SMA. Heck, it could even pop back up to the 1.1025 channel resistance area!
But what if the bears pounce on the current prices? Look out for a bounce from the 100 SMA, which could drag EUR/CHF back down to its May lows.
