Happy Friyay, forex friends!
We’re all about the Loonie today as we take a closer look at EUR/CAD’s uptrend and CAD/CHF’s range breakout.
Don’t even think of missing these setups!
In case you missed it, CAD/CHF has broken above an 85-pip range that the pair had been hanging out in all October.
CAD/CHF traded as high as .7335 before CAD bears stepped in and dragged the pair lower.
What makes CAD/CHF interesting today is that it’s back at the .7280 zone that served as resistance for most of October.
Are we looking at a break-and-retest situation here?
Stochastic is on the bulls’ side with an oversold signal while the consolidation at .7280 tells us that there are at least enough bulls to prevent further downside action for CAD/CHF.
Look out for the first signs of a bounce that could propel EUR/CAD to its monthly highs!
If trend plays are more your thing, then you’ll want to know that EUR/CAD is sitting on a verrry attractive level for trend playas.
EUR/CAD is trading near 1.3450, which is near the 4-hour chart’s 100 SMA.
More importantly, it’s just above an ascending channel support that hasn’t been broken since late August.
The steady to widening gap between the 100 and 200 SMAs suggests that the uptrend hasn’t lost its momentum.
If you agree and want to jump on EUR/CAD’s uptrend, then you can enter at current levels and place your stops just below the channel to get a good risk ratio.
Not feeling like buying EUR against CAD?
You can also design trading plans around a downside breakout. A clear break below the channel might drag EUR/CAD back to the 1.3300 or 1.3270 previous inflection points.
Whichever bias you end up trading, make sure to practice good risk management like it’s your only job!