Chart Artwork: Development Continuation Alternatives for EUR/USD and CAD/JPY

Welcome to mid-week buying and selling!

Whether or not you want buying and selling the majors or if comdoll buying and selling is extra your factor, I bought yo again with pattern continuation (or reversal) alternatives on EUR/USD and CAD/JPY.

Test these out!

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Foreign exchange Chart

EUR/USD has fallen by about 75 pips from final week’s excessive! The pair is now buying and selling slightly below the 1.1850 mark, which is close to the 1-hour chart’s 200 SMA and an ascending channel help that’s been round since August.

Let’s see if EUR/USD bulls can lengthen the widespread forex’s uptrend. I’m seeing quite a lot of pink candles proper now however we gotta be prepared in case consolidation candlesticks pop up close to the channel help.

Final week’s highs close to 1.1900 could be a great preliminary goal for the bulls however I ain’t discounting a go to of the 1.1950 space of curiosity if there’s sufficient momentum.

However what if EUR/USD extends its downswing and breaks beneath the channel help? In case you consider that the euro will see a short-term bearish reversal, then you can begin scaling in positions after a transparent draw back breakout after which place stops above the damaged help zones.

CAD/JPY 4-hour Forex Chart
CAD/JPY 4-hour Foreign exchange Chart

Will the pattern proceed to be CAD/JPY bears’ buddy?

As you may see, CAD/JPY is chillin’ at a descending channel resistance that hasn’t been damaged since late Might.

Factor is, it’s additionally buying and selling above the 200 SMA on the 4-hour time-frame. What’s extra, there’s additionally a bullish divergence on the chart!

Development warriors who assume CAD/JPY will revisit August’s lows can begin shorting at present ranges and inserting stops simply above August’s highs for a great risk ratio.

In case you’d somewhat take your cues from the bullish divergence, nevertheless, then you may await CAD/JPY to return to final week’s highs after which begin constructing lengthy positions after confirming a channel breakout.

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