Welcome to the brand new commercial week!
Whether you’re looking for dollar pairs or preferring yen crosses, I’ve come back with updated settings in USD / CAD and EUR / JPY.
Take a look!
If you’ve been watching EUR / JPY for weeks, you’ll know that the euro has been on a downward trend against the yen since June.
The pair is already on its way up after finding support for psychological control 128.00.
Can EUR / JPY expand its bearish trend? I still don’t see red chandeliers, but the euro is fast approaching the 100 SMAs approaching 50% Fib of the August drop and the support of the trend line that has been in place for weeks.
Shortening the first signs of bearish momentum is a good bet, especially if you place the stops just above the resistance of the trend line.
If you prefer to buy the euro against the yen, you will probably want to do so after the EUR / JPY crosses the trend line and stays above the 200 SMA on the chart.
While you wait for the chandeliers to confirm the direction of EUR / JPY, you may want to look at the USD / CAD daily time frame.
Look, not only did the dollar make a tombstone doji, but it had done so after a solid green candle and before a potentially red candle.
Are we looking at an ongoing evening star pattern? Take a close look at today’s candle to see if the USD / CAD is achieved with the bearish investment pattern.
Reducing current prices would make sense if you think the dollar / CAD will see enough sales to go back at least to its trend line.
Of course, dojis are still candles of indecision and could still lead to subsequent purchase. If today’s candle turns green, you’ll be better prepared for a possible continuation of last week’s rebound.
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