Who’s ready for some back-to-back comdoll trading?
I hope you are because USD/CAD and CAD/JPY are throwing us hesitation candlesticks around interesting chart levels!
Which setup will you more likely trade?
CAD/JPY: 4-hour
In case you missed it, Loonie bulls have been taking a chill pill since mid-October after pushing CAD/JPY 800 pips higher between late September and early October.
What’s interesting about today’s setup is that CAD/JPY is hitting the top of a descending channel a few days after we saw a moving average crossover.
Are we looking at an opportunity to jump on a downtrend? Or is this just a bullish flag pattern that would lead to an extension of CAD/JPY’s weeks-long uptrend?
Loonie bears can start loading them shorts at current levels and target November’s lows for a good risk ratio.
Feel like buying the Loonie against the yen instead? Y’all can wait for a clear break above the channel and the 200 SMA before targeting areas of interest like 91.50 or 92.50.
USD/CAD: Daily
Comdoll crosses not your thing? No worries, I gotchu!
USD/CAD is about 150 pips away from a range resistance that’s been around since the start of the year.
Based on the hesitation candlesticks around the current levels, though, it looks like the bears aren’t willing to wait for a range resistance retest.
Is the current upswing topping at 1.2650? USD/CAD traders who like to take cues from Stochastic’s overbought signal can short at current levels and target potential inflection points like 1.2550 or 1.2325.
If you’d rather trade a move to 1.2800, however, then you’ll want to do it after USD/CAD makes new November highs. Oh, and make sure you’re ready to bail in case there’s selling pressure around the previous resistance zone!
