Range playas are in for a treat because we’re checkin’ out not one, but TWO range trades today.
Have you spotted USD/JPY and CAD/CHF’s ranges yet?
If you haven’t, then today’s your lucky day!
USD/JPY is 20 or so pips away from the 136.60 mark that has served as resistance at least twice in the last two weeks.
What makes USD/JPY’s 1-hour chart interesting today is that Stochastic is supporting an “overbought” signal. Not only that, but the last few candlesticks are hinting at exhaustion for this week’s upswing.
Think USD/JPY is about ready to turn lower?
Dollar bears can start scaling in at current levels and then add to short positions as soon as USD/JPY gets rejected at the 136.60 area.
Of course, you can also wait for an actual test (and rejection) of the range resistance if you’re not sure about USD losing pips against JPY.
Feel like buying USD/JPY instead? You can wait for a clear break above 136.70 before you aim for new 2022 highs. Good luck!
Not a fan of trading USD these days? I gotchu!
CAD/CHF is consolidating near .7475, which is right around last week’s highs as well as a support level in late May.
With Stochastic flashing an “overbought” signal and the 100 SMA not far from current prices, you can bet that at least some CAD bears are eyeing a bounce lower.
Shorting at current levels could yield a good risk ratio especially if you aim for the range support 100 pips away near .7375.
If you’re confident that CAD/CHF is ready for an upside breakout, then you can also place orders above the 100 SMA and then add to your long positions as soon as the pair consistently trades above .7500.
What do you think? Which way will CAD/CHF trade this week?