Welcome to mid-week trading!
Whether you like trading the majors or if comdoll trading is more your thing, I got yo back with trend continuation (or reversal) opportunities on EUR/USD and CAD/JPY.
Check these out!
EUR/USD has fallen by about 75 pips from last week’s high! The pair is now trading just under the 1.1850 mark, which is near the 1-hour chart’s 200 SMA and an ascending channel support that’s been around since August.
Let’s see if EUR/USD bulls can extend the common currency’s uptrend. I’m seeing a lot of red candles right now but we gotta be ready in case consolidation candlesticks pop up near the channel support.
Last week’s highs near 1.1900 would be a good initial target for the bulls but I ain’t discounting a visit of the 1.1950 area of interest if there’s enough momentum.
But what if EUR/USD extends its downswing and breaks below the channel support? If you believe that the euro will see a short-term bearish reversal, then you can start scaling in positions after a clear downside breakout and then place stops above the broken support zones.
Will the trend continue to be CAD/JPY bears’ friend?
As you can see, CAD/JPY is chillin’ at a descending channel resistance that hasn’t been broken since late May.
Trend warriors who think CAD/JPY will revisit August’s lows can start shorting at current levels and placing stops just above August’s highs for a good risk ratio.
If you’d rather take your cues from the bullish divergence, however, then you can wait for CAD/JPY to return to last week’s highs and then start building long positions after confirming a channel breakout.