Can’t get enough of shor-term trend setups? I gotchu!
Whether you like trading the U.S. dollar or you’re more into currency crosses, I got your back with trend setups on USD/JPY and AUD/CAD’s charts.
Take a look!
USD/JPY 1-hour Forex Chart by TradingView
Dollar warriors gather ’round! USD/JPY has been in an upswing since last week when USD/JPY found support from the 130.75 previous area of interest.
Can USD/JPY maintain its momentum? The pair just got rejected at the 133.75 resistance and now it’s trading just under the 133.50 mark.
USD buyers can take comfort in the fact that USD/JPY seems to be finding support from a trend line that hasn’t been broken since the upswing started.
This time around, the trend line retest also lines up with a pullback to the 50% Fibonacci level.
Buying at current levels would yield a good risk ratio especially if USD/JPY makes new monthly highs.
But will the pair extend its uptrend?
Take note that April’s high just under the 134.00 psychological level has been holding as resistance since mid-March. It’s gonna take extra effort to shake off the bears around the level!
AUD/CAD 1-hour Forex Chart by TradingView
Here’s a nice and simpler trend trade if you’re not feeling like trading 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, AUD/CAD is testing the 200 SMA on the 1-hour time frame. As you can see, the 200 SMA is not far from the descending channel resistance on the chart.
Shorting at current prices and placing stops just above the channel would make for a good trade if AUD/CAD extends its downtrend.
If you’d rather buy AUD against CAD, then you can also consider buying as soon as AUD/CAD convincingly breaks above the channel that we’re watching.
Just make sure that you’re trading a breakout and not a fakeout if you’re buying AUD/CAD!
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