Who’s up for range and countertrend-trading?
If you are, then you should check out USD/CAD and GBP/USD’s charts today.
They be showing opportunities!
USD/CAD: 4-hour
USD/CAD is hanging out around 1.2670, which is a level that dollar bulls and bears have been paying attention to since late January.
Will we see a bounce today?
Stochastic is on the bulls’ side with an oversold signal. If enough bulls pay attention, we could see a move to the 1.2700 psychological handle or 1.2750 zone closer to the 100 and 200 SMAs and mid-range resistance.
Before you buy USD/CAD like there’s no tomorrow, though, take note that the candlesticks don’t support a bounce just yet. Y’all might want to wait until we see green candlesticks or sustained buying above the range support before you pull the trigger on your long trades.
If you’d rather sell USD against CAD, then you can place sell stop orders below the range or March’s lows and then take profits at the first signs of bullish pressure.
GBP/USD: Daily
GBP/USD just bounced from the 1.3000 psychological level that lines up with a descending channel support on the daily time frame.
Keep your eyes on the 1.3250 area as it’s near December’s lows and the 38.2% Fibonacci retracement of February’s downswing.
Cable traders who would rather trade with the trend can look at the Fib pullback levels or the 100 and 200 SMAs closer to the channel resistance for entry opportunities.
Feel like trading the current (countertrend) momentum instead? You can buy at current levels and then bail as soon as you see sustained bearish pressure around the resistance levels that we’ve marked.
