The setup:
1) downtrend on the daily.
2) a pullback against this trend has occurred the past week and a half.
3) A reversal candle printed at resistance.
4) as a bonus, but not really necessary for the setup, stochastics are in overbought level and started curling downward.
The trade: Short with a stop at 104.20 (just above yesterday's high). R = ~125 pips.
CAD/CHF has a near perfect trendline break and back test on the 3 hour chart. Weakness that started in the middle of the week should carry over to next week. Short with a stop above the previous swing high, around 0.7620. Target between .73 and .74.
USD/CAD broke the downtrend it had been all year a few weeks ago and then consolidated in a bull flag. It broke the bull flag today on the FOMC minutes news. Buy the breakout with a stop at the low of day.
Last week I posted a bullish pattern on the EUR/GBP daily chart. Prices rose slightly after that but have since then formed a descending triangle topping pattern on the hourly chart. A break below 0.7860 would indicate a sell signal.
CAD/JPY has been forming a support trendline since January and now it is bouncing off of it again. There was a bullish engulfing candle right at support yesterday and a follow through day today. Stochastics curling back from oversold levels has consistently led to short term rallies in 2016. Buy with a stop below the support line.
GBP/JPY has been trading in a sideways for over 8 weeks and now is at the bottom of the range. With support underneath, the daily chart printed a bullish engulfing candle. Stochastics nears oversold territory and starting to curl as well. Buy here with a stop below the LOD.
CAD/CHF printed a bullish reversal candle on the daily chart. A resumption of the bullish trend looks probable. Stochastics approaching oversold territory. Buy with a stop below today's low.
EUR/GBP has been in a strong uptrend since November without giving a decent pullback for re-rentry until recently. A bullish candle on friday suggests the uptrend could resume next week. Stochastics are also starting to curl upward from oversold levels. Buying with a stop below the recent swing low provides a good R/R opportunity.
After a series of narrow range days at prior resistance, CAD/CHF broke down on Friday. Stochastics also coming down from overbought levels. Shorting here with a stop above the previous resistance (blue horizontal line) presents a good R/R trade.
GBP/NZD printed a bearish reversal candle on the daily chart right at the resistance of a down-sloping trendline. Stochastics also starting to reverse from overbought levels. Good R/R here with a stop above the day's high.
