I spy with my eye not one, but TWO short-term trend plays you’ll definitely want to look at.
Ready to trade a major and a comdoll pair?
First up is a nice and simple trend retracement play on Cable.
As you can see, the pair is finding support at the 1.3325 zone that’s right smack at a 50% Fib and 100 SMA support. What’s more, it also lines up with a trend line that hasn’t been broken since last week!Think the pound will continue to make pips against the dollar? Buying at current prices would give you boss-level risk ratios especially if the pound ends up making new September highs.
However, if you believe that the dollar will actually shine against the pound in the next couple of trading sessions, then you can also keep your eyes peeled for a break below the trend line.
Once you see sustained bearish pressure below the trend line and the SMAs, then you can proceed to target previous areas of interest closer to 1.3320 or 1.3150.
Unless you’ve been too busy replaying all them fancy numbers at the latest VMA, then you’ll know that USD/CAD has been on a downtrend since the start of the year.What makes the pair interesting today is that it may soon be locked in an observable range. As you can see in the chart above, USD/CAD has a cute habit of trading inside a 100-pip range after dropping by around 250 pips.
If we consider that the dollar had already dropped by 250 pips since last week, then USD/CAD may be due for a range-type action.