Can’t get enough of short term trend setups? I’m Gucho!
Whether you want to trade the US dollar or you are more into currency crosses, we’ve got your support for trend setups on the USD/JPY and AUD/CAD charts.
take a look!
USD/JPY 1 hour chart by TradingView
Dollar warriors meet! USD/JPY has been on the upswing since last week when USD/JPY found support from the 130.75 former area of interest.
Can USD/JPY sustain its momentum? The pair has just been rejected at the 133.75 resistance level and is now trading just below the 133.50 level.
USD buyers can take comfort in the fact that USD/JPY appears to be finding support from a trend line that has not been broken since the uptrend began.
This time, a retest of the trend line with a pullback to the 50% Fibonacci level is also lining up.
Buying at the current levels will result in a good risk ratio, especially if the USD/JPY records new monthly highs.
But will the pair extend its bullish trend?
Note that the April high below the psychological level of 134.00 has been holding as resistance since mid-March. It will take the extra effort to get rid of the bears around the level!
1 hour AUD/CAD forex chart by TradingView
Here’s a nice and simpler trend trade if you don’t want to trade the USD this week!
AUD/CAD has been giving us lower highs and lower lows since late March and now the pair is at attractive levels for trend players.
Specifically, the AUD/CAD is testing the 200 SMA on the 1-hour timeframe. As you can see, the 200 SMA is not far from the descending resistance channel on the chart.
Going short at current prices and placing stop-loss orders just above the channel would make a good trade if AUD/CAD extends its downtrend.
If you prefer to go long AUDCAD, you could also consider going long once AUD/CAD breaks convincingly above the channel that we are watching.
Just make sure you are trading the breakout and not the false breakout if you are buying AUD/CAD!