Who’s up for trend continuation opportunities?
Whether you like trading the dollar or you’re more into cross currencies, I got yo back with potential setups on USD/CAD and EUR/CHF.
Which chart will you most likely trade this week?
USD/CAD had a rough start to the week after hitting a ceiling at 1.2775 and breaking below a Head and Shoulders pattern on the 1-hour time frame.Think USD will eventually find its way back up? Dollar bulls can watch the 1.2650 psychological level for potential support.
As you can see, the area lines up with a previous resistance as well as the 38.2% Fibonacci retracement of the last downswing.
Stochastic is also on the bulls’ side with an oversold signal. I wouldn’t bet the farm on long trades yet, though, as the last candlesticks show strong bearish momentum.
Take a look at how USD/CAD may react to 1.2650. If USD starts seeing green shoots at the level, then USD/CAD may head back up to the 1.2800 zone.
Score one for EUR/CHF’s 200 SMA!The pair broke below a tight consolidation at 1.0350, but it looks like the bloodbath ended when EUR/CHF found support at the rising trend line and 200 SMA levels near 1.0250.
Not convinced that the euro can get more pips against the franc?
The odds are currently not in your favor, but you can wait for a clear break below the trend line and 200 SMA support zones if you’re planning on shorting EUR/CHF.
Whichever bias you end up trading, make sure to manage your risks like your next concert tickets depend on it!