Good morning, Traders!
There are days when the price action is giving mixed signals. This often resolves itself by the time the U.S. session kicks off.
Today there are many charts that are either over-extended, or simply too noisy to trade.
When you hear of time when traders might need to sit on their hands? Today might be one of those days where there are fewer opportunities than others.
Here are my market picks for today:
USDJPY, 4-hour, bullish
With the most recent high, this now confirms that USDJPY Daily is in an uptrend.
I’m now looking for an entry to the upside on the 4hr or lower timeframe.
There is a bullish candle currently printing, and I can either look for an entry above the high of this closed candle if it closes higher, or an entry above the most recent high, which is the prior candle.
A sensible Stop-loss (because we always use a Stop-loss) could be placed below the same bullish current candle, or below the most recent swing-low around 136.50
Traders who take partial profits when price reaches 1:1 often enjoy few losses.
EURCAD, 1-hour, bearish
EURCAD has produced a bearish head-and-shoulderspattern on the 4-hour chart. The Daily has become very over-extended and is due for a natural retracement.
It’s reasonable to expect price to break lower and head towards 1.4283
My entry will be a few pips below any candle that closes below the current support level at 1.4347.
A sensible stop-loss placement would be above the recent highs that are at 1.4377
Taking partial-profits at 1:1 is a great way to mitigate risk, as well as targeting a realistic price point, such as a major resistance level, or 1:3 risk-to-reward point.