Where my currency cross trader friends at?
We’re looking at comdoll crosses today because CAD/JPY is chillin’ near the top of a descending channel while EUR/AUD is about to hit a key pullback level.
Don’t even think of missing these opportunities!
CAD/JPY: 4-hour
First up is a textbook trend play on CAD/JPY’s 4-hour time frame.
See, the Loonie got rejected at the big 90.00 handle that was also near the 100 and 200 simple moving averages as well as the retest of a descending channel resistance.
Stochastic is giving us “overbought” vibes so you know that at least some Loonie bears are looking at this setup.Shorting at current levels would yield the best risk ratio but you can also wait for a bit more momentum if you’re not confident that CAD/JPY will dip back to its November lows.
If you’d rather buy the Loonie against the yen, though, then you’ll want to do it once CAD/JPY clearly busts above the 200 SMA and the descending channel. The 91.25 previous high is an attractive target but you can also aim for the 92.50 zone if you see enough bullish momentum.
EUR/AUD: 4-hour
Holla if you’re a Fib playa!
EUR/AUD is about to reach the 61.8% Fibonacci retracement of late November’s upswing, an area that’s near the 100 SMA and a previous resistance on the 4-hour time frame.Euro bulls who are confident that the Fib level would hold as support can buy at current levels, while more conservative traders can place buy orders closer to the 200 SMA or as soon as there’s enough buying pressure.
Think the euro will see significant losses against the Aussie before the bulls step in? You can also sell at current levels and ride the current downswing and then bail as soon as EUR/AUD finds a legit support zone.
Good luck and good trading this one!