Looking for setups to end your week on a strong note?
I gotchu! Today we’re looking at USD/CAD and EUR/AUD’s break and retest opportunities on the 1-hour and 4-hour time frames.
Check them out, trader friends!
Did USD/CAD just break above a descending channel?USD/CAD is not only trading above the channel’s resistance, but it also busted through the 100 and 200 simple moving averages on the 1-hour time frame.
Breakout playas can take advantage of the “pullback” to the 50% Fib level that’s close to the broken trend line resistance. A long trade at current levels would make for a good entry if USD/CAD extends its upswing above January’s highs.
But what if the “breakout” is actually a fakeout? Look out for consistent trading back inside the channel, which could extend USD/CAD’s weeks-long downtrend.
After breaking and then consolidating below an identified channel, EUR/AUD has gained some pips and is now trading just below the 1.5800 mark.As you can see, EUR/AUD’s current levels line up with the 38.2% Fib pullback of December’s downswing. What’s more, the euro is also trading around the moving averages on the 4-hour chart!
Shorting at the first signs of bearish momentum is a good idea if you’re betting on EUR/AUD dropping back down to its December lows.
If you think that euro bulls are just getting started, though, then you can also wait for EUR/AUD to make new January highs before targeting previous areas of interest like 1.5900 or 1.6000.