Comdoll playas huddle up!
Today we’re looking at not one, but TWO comdoll trends that you can take advantage of.
Which setup will you more likely trade?
CAD/JPY: 4-hour
First up is a nice and observable downtrend on CAD/JPY. See, the pair is now trading just under 87.00 after finding support at the 84.50 zone.
What makes its current prices interesting is that it’s consolidating near the 61.8% Fib retracement of August’s downtrend as well as the 100 SMA on the 4-hour time frame.
Will the Loonie extend its downtrend against the yen?
Shorting at the top of the channel closer to 88.00 may give the best risk ratios but selling at current levels may not be so bad especially if the SMAs hold as resistance and CAD/JPY drops back to its August lows.
Feel like buying CAD/JPY instead? Look for a break above the SMAs or even the channel that we’ve marked before targeting areas of interest like 88.50, 89.00, or 90.00.
EUR/AUD: 4-hour
Not a fan of trading the yen? Let’s set you up for some euro trading!
EUR/AUD is having trouble making new lows below 1.6170, which isn’t surprising since the area hangs around the 50% Fib pullback of August’s upswing and a key resistance back in late July.
If you’re one of them euro bulls and you think that the 4-hour bullish divergence will count for something, then you can buy at current levels and aim for the month’s highs.
If you’d rather sell the common currency against the Aussie, however, then you can wait for EUR/AUD to clearly trade below the key Fib levels and the SMAs before eyeing inflection points like 1.6120, 1.6050, and 1.5975.
