If you’re looking for short-term trades then you’re in luck!
AUD/USD is hanging around an SMA crossover while EUR/CAD is testing a major uptrend support.
What do you think of these setups?
AUD/USD: 1-hour
After breaking above a weeks-long downtrend, AUD/USD bulls really said “bye!” when they encountered resistance at the .7450 handle.
AUD/USD is now trading at .7325, which is near the 38.2% Fib pullback of the last upswing.
But wait, there’s more! As you can see, .7325 is also around the 100 SMA that has just crossed above the 200 SMA on the 1-hour time frame.
Think August’s upswing will result in a longer-term uptrend? Bulls can start buying the Aussie at current levels and then add up once AUD/USD surpasses September’s highs.
If you believe that AUD/USD will go back to its downtrend, though, then you’ll definitely want to wait until AUD/USD firmly trades below the SMAs before you start scaling in your short positions.
EUR/CAD: 1-hour
Here’s a simple one for the trend warriors out there!
EUR/CAD is consolidating at 1.4925, which isn’t surprising since the level has been a BFD for bulls and bears on the 1-hour chart.
This time around, 1.4925 lines up with an ascending channel support that hasn’t been broken since late August.
Bulls can watch for momentum above the current levels, which could push EUR/CAD to 1.5000 if not September’s highs near 1.5030.
If you’re not discounting a downside breakout, though, then you should also prepare for when EUR/CAD drops below its trend line support.
1.4850 would make for a decent profit target but you can also aim for 1.4800 if you see enough bearish momentum.
