Welcome to mid-week buying and selling, foreign exchange associates!
We’re all about CAD at the moment as we discover AUD/CAD’s downtrend and EUR/CAD’s vary alternative.
What do you consider these setups?
AUD/CAD is seeing a textbook case of decrease highs and decrease lows! The pair has been buying and selling in a downtrend because the 100 SMA crossed beneath the 200 SMA earlier this month.
AUD bears have one other probability to flex as AUD/CAD hangs out on the .8950 minor psychological stage close to the highest of the 1-hour chart’s descending channel resistance.
And if that’s not bearish sufficient for ya, take a look at the divergence shaped if you happen to take into account Stochastic’s greater highs!
Shorting at present ranges of the primary indicators of bearish momentum would yield a very good threat ratio if AUD/CAD dips again to its June lows.
When you begin to see AUD/CAD constantly commerce above the channel and the 100 SMA, although, then you definitely gotta be able to commerce a possible breakout and a short-term reversal!
The place my range-trading brothas at?
EUR/CAD is having bother breaking the 1.3530 vary resistance stage that EUR bulls haven’t breached because the begin of the month.
It doesn’t assist that Stochastic is already flirting with overbought ranges and that the 100 and 200 easy transferring averages are juuust above present costs.
Suppose the vary will maintain for an additional day?
A rejection at 1.3530 may drag EUR/CAD again all the way down to the 1.3460 mid-range ranges if not the 1.3400 vary help zone.
A breakout above the vary and the SMAs, alternatively, may push the euro again as much as the 1.3650 or 1.3700 earlier areas of curiosity.