Who’s ready for some back-to-back comdoll trading?
I hope you are because USD/CAD and CAD/JPY are throwing us hesitation candlesticks around interesting chart levels!
Which setup will you more likely trade?
In case you missed it, Loonie bulls have been taking a chill pill since mid-October after pushing CAD/JPY 800 pips higher between late September and early October.What’s interesting about today’s setup is that CAD/JPY is hitting the top of a descending channel a few days after we saw a moving average crossover.
Are we looking at an opportunity to jump on a downtrend? Or is this just a bullish flag pattern that would lead to an extension of CAD/JPY’s weeks-long uptrend?
Loonie bears can start loading them shorts at current levels and target November’s lows for a good risk ratio.
Feel like buying the Loonie against the yen instead? Y’all can wait for a clear break above the channel and the 200 SMA before targeting areas of interest like 91.50 or 92.50.
Comdoll crosses not your thing? No worries, I gotchu!
USD/CAD is about 150 pips away from a range resistance that’s been around since the start of the year.Based on the hesitation candlesticks around the current levels, though, it looks like the bears aren’t willing to wait for a range resistance retest.
Is the current upswing topping at 1.2650? USD/CAD traders who like to take cues from Stochastic’s overbought signal can short at current levels and target potential inflection points like 1.2550 or 1.2325.
If you’d rather trade a move to 1.2800, however, then you’ll want to do it after USD/CAD makes new November highs. Oh, and make sure you’re ready to bail in case there’s selling pressure around the previous resistance zone!