Ready for more forex plays?
I hope you’re looking for dollar setups because EUR/USD and USD/CAD are trading at key areas of interest!
Check out their 1-hour charts:
In case you missed it, EUR/USD dropped like a rock some time in the middle of January and didn’t come up for air until it found support at 1.1120. That’s more than a 300-pip move!The euro is now flirting with the 1.1250 psychological level that was a solid support in December and which now lines up with the 50% Fibonacci retracement of last week’s downswing.
Traders who take cues from the chart’s bearish divergence can start loading up short positions around the current levels while aiming for January’s lows.
If you believe that the upwsing will gain momentum and bust EUR/USD through 1.1250, however, then you can also place long trades above the 200 SMA and target the 1.1375 and 1.1450 inflection points.
Here’s a simple trend play for ya!
The dollar has been gaining pips against the Loonie since last week but has found resistance at the 1.2800 psychological handle.USD/CAD is now trading at 1.2700, which is close to the 38.2% Fibonacci retracement of the last upswing. What’s more, it’s also near the 1-hour chart’s 100 SMA and a trend line support that’s been around since last week!
Bulls who are confident that SMA, Fib level, and trend line would hold as support can buy at current levels and aim for the 1.2800 highs or even new 2022 highs for USD/CAD.
If you’re not a fan of further USD/CAD strength, though, then you can also place orders below the support zone that we’re watching. A clear break below the trend line can lead to a retest of the 1.2650 support or a visit to the 1.2550 area of interest.