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Chart Art: Trend Continuation Trades on USD/CAD and GBP/JPY

November 16, 2022| Forex Market

Can you believe it’s already the middle of the week?

Whether you’re searching for your next dollar trade or you’re more into currency crosses, I gotchu with these trend trades on USD/CAD and GBP/JPY.

Get ’em while they’re hot!

GBP/JPY 1-Hour Forex Chart

GBP/JPY 1-Hour Forex Chart

The pound has been having a weak November against the yen with GBP/JPY hitting resistance at 172.00 and before dropping to its 164.00 lows.

Guppy is currently trading closer to the 166.00 psychological that’s near the 50% Fibonacci retracement of November’s downswing AND a descending channel resistance that hasn’t been broken in weeks.

Will GBP/JPY extend its downtrend?

Shorting at current levels would yield a good risk ratio for those who are betting on GBP/JPY dropping back to its 164.00 lows or even making new monthly lows in the next couple of days.

Think GBP/JPY is due for a bullish reversal instead?

You can probably start buying as soon as GBP/JPY busts above the channel and 200 SMA resistance zones on the chart.

Whichever bias you choose to trade, make sure to use wide stops so you don’t get taken out by GBP/JPY’s average hourly volatility!

USD/CAD Daily Forex Chart

USD/CAD Daily Forex Chart

Who’s up for some dollar trading?

If you are, then you’re gonna like that USD/CAD is having trouble extending its downswing below the 1.3250 – 1.3300 area.

As you can see, USD/CAD’s current prices line up with the daily chart’s 100 SMA as well as a trend line support that’s been solid since June this year.

Buying at the first signs of bullish pressure is a good idea if you believe that USD/CAD will revisit its highs near 1.3800 and eventually hit the big 1.4000.

Not convinced that USD can extend its gains against CAD?

You can also start plotting your downside breakout entries below the trend line and the daily chart’s 200 SMA. Just make sure that you’re trading a downside breakout and not a fakeout!

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