Sup, fam? If y’all are in the mood for short-term trend plays on the Greenback, then y’all may wanna check out today’s intraday charts update ‘coz I’ve got a couple of channels on USD/JPY and USD/CAD that y’all may like.
As y’all can see, USD/CAD has been trending higher recently while apparently trapped inside that there ascending channel.
And from the looks of it, the pair is currently hesitating at the channel’s resistance area. It’s therefore only a matter of time before the pair moves back down to test the channel’s support, which should be around the area of interest at 1.3110.
However, do keep an eye on 1.3160 as well since there’s also a chance that support may form there. After all, 1.3160 is just below the mid-channel area. Also, if (or when) the pair does reach 1.3160, the 100 SMA may potentially act as dynamic support.
Of course, there’s always a risk that both 1.3160 and 1.3110 may fail to hold as support and open the way for a downside channel breakout. The pair would still need to smash lower past 1.3060 before the downside move is confirmed, though.
USD/CAD ain’t the only USD pair that has been trending higher while bouncing up and down inside an ascending channel ‘coz USD/JPY has apparently been doing the same thing.
Unlike USD/CAD, however, USD/JPY is already below the mid-channel area and will likely be testing the channel’s support soon, which should be at or just below the area of interest at 113.60. Y’all may therefore wanna get ready to start lookin’ for opportunities to go long on the pair.
But just in case 113.60 fails to hold as support, then everything’s still chill as long as the pair does not move lower past 113.10.
However, if selling pressure is relentless and forces the pair to move lower past 113.10, then that’s a sign that bears are winning out, so y’all may wanna bail yo longs or even switch to a more bearish bias on the pair.
Whichever scenario plays out, y’all just remember to practice proper risk management as always, a’ight?