Comdoll traders huddle up! Today we’re checking out hot Fib retracement trades on AUD/JPY and EUR/CAD‘s 1-hour charts. Which one do you think will yield more pips?
Bounce alert! AUD/JPY is trading at 62.50, which is about 200 pips away from its low from earlier today.
Can the bulls maintain their momentum? Buyers who are into this upswing can buy at current levels until the pair sees bearish pressure.
The 64.50 handle, in particular, is a level to watch as it’s near a 50% Fib retracement as well as a trend line and 100 SMA resistance.
Not convinced that AUD/JPY can hit the trend line before Aussie sellers come back? You can also short AUD/JPY at the first signs of bearish momentum and aim for new lows for the pair.
Whichever bias you’re trading, make sure you’ve got your eye on AUD/JPY’s volatility to better guide you on your profit and stop loss levels!
I spy with my eye a resistance-turned-support play in the making!
EUR/CAD is about to hit 1.5650, which is right smack at a 50% Fib retracement and trend line support on the 1-hour chart. What’s more, the minor psychological level lines up with a resistance level that the pair had recently broken!
But wait! Before you buy EUR/CAD like there’s no tomorrow, you should note that candlesticks are still pointing to the bears being in control. You might want to wait for a couple of hesitation candles before you put them long orders in!
Buying at the first signs of a bounce would give you the best reward-to-risk ratio in case EUR/CAD resumes its uptrend.
If you’d rather short the euro against the Loonie, however, then you can also wait until the pair drops below the trend line and the SMAs before you aim for areas of interest like 1.5500 and 1.5350.
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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