Staying away from the U.S. dollar today? I gotchu!
GBP/JPY looks ready to retest a broken trend line while CAD/CHF is bouncing from a range support.
Which setup will you more likely trade?
GBP/JPY: 1-hour
Breakout alert! I don’t know if you noticed but GBP/JPY broke below a trend line support that had held solid since mid-February.
The pair has found support at the 162.00 psychological handle, however, and now it looks like it’s ready to retest the broken trend line.
Are we looking at a break-and-retest scenario here?
Take note that the broken support now lines up with the 50% Fibonacci retracement of the last downswing AND a major support in the last two weeks.
A rejection at the 163.00 previous support zone could lead to GBP/JPY starting a downtrend that could last weeks.
But if GBP/JPY busts through the broken trend line, then GBP/JPY could extend its uptrend and revisit previous highs like 163.50 or 164.00.
CAD/CHF: 4-hour
Next up is a textbook range play on CAD/CHF’s 4-hour time frame!
The pair has been trading inside a 90ish-pip range since late January and it doesn’t look like the pair is ready for a new direction.
Specifically, CAD/CHF looks ready to bounce from the .6840 range support now that Stochastic has just left its oversold levels.
But can CAD bulls pull off another run for the .6925 range resistance?
Range playas who are confident that the range would hold this week can aim for the .6880 mid-range or .6925 range resistance levels.
Not comfortable trading a range or a non-USD pair? You can increase your winning odds by checking out CAD/CHF’s average volatility and base your volatility stops depending on your trading time frame. Good luck!
