Welcome to mid-week trading, errbody!
Both Ether (ETH/USD) and CAD/JPY are hitting verrry important trend resistance zones right now.
Think the trend will continue to be our friend for the rest of the week?
CAD/JPY: 4-hour
CAD/JPY 4-hour Forex Chart by TradingView
CAD/JPY fell sharply in October after the pair found resistance at the 110.00 psychological handle.
The selling has since taken a chill pill BUT the pair hasn’t stopped making lower highs and higher lows. In fact, it’s showing a visible downtrend on the 4-hour time frame!The ball is on the bears’ side right now as CAD/JPY tests the 97.75 channel resistance that happens to be near the 100 and 200 SMAs on the chart.
Sustained selling pressure could drag CAD/JPY back below the 100 SMA and maybe to the pair’s January lows near 94.75.
But if this week’s upswing gets enough support, then CAD/JPY could break above the channel and maybe hang out above the 100.00 major inflection point.
Ether (ETH/USD): Daily
Ether (ETH/USD) Daily Chart by TradingView
Ether (ETH/USD) is trading around the $1,550 mark, which is just below its monthly highs near the $1,670 region.
Are we looking at a pause before another upswing? Or are the bulls done attacking for now?
The next candlesticks would hint at the pair’s next direction.A couple more red candlesticks could draw more attention to Stochastic’s overbought signal. ETH bears could start a bearish momentum that may drag ETH/USD to its mid-channel levels near $1,250 or even its $1,1000 previous lows.
If ETH regains its bullish momentum, however, then we gotta prepare for a move to the $1,700 zone and beyond.
An upside breakout, coupled with a possible SMA crossover, could propel ETH to the $2,000 major area of interest.
Watch this one closely, yo!
