Looking for a long-term trend setup or a simple range play?
I’ve got you covered with these trade opportunities on USD/CAD and GBP/JPY!
Here are the inflection points to keep tabs on:
USD/CAD: 4-hour
This forex pair barely looked back from its recent rally, but it looks like buyers are about to hit a pretty strong roadblock soon.
USD/CAD is closing in on the top of its range visible on the 4-hour time frame, so the climb might halt right at this 1.2850 minor psychological resistance.
Stochastic is already indicating overbought conditions and looks ready to turn south, so price could follow suit. In that case, USD/CAD could retreat to nearby support zones or the bottom of the range at 1.2475.
I’m seeing a potential bullish moving average crossover, though, hinting that an upside breakout could follow. If that happens, the pair could rally by the same height as the rectangle or roughly 375 pips!
GBP/JPY: Daily
Here’s a neat pullback setup for y’all trend traders out there!
Guppy is in correction mode and is approaching a key area of interest seen on the daily time frame. Price is already testing the 50% Fibonacci retracement level near the 160.00 major psychological mark, but buyers might be holding out for a larger pullback.
The 61.8% level looks like a prime entry spot for more conservative traders, as this coincides with a former resistance zone and the 100 SMA dynamic support.
This faster-moving SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to resume than to reverse.
If any of the Fibs are able to keep losses in check, GBP/JPY could soon make its way back up to the swing high at 168.50 and beyond.
