27 Mar GBP USD, CAD JPY Similarities And Updates
Having gone over the watch list a number of times tonight, there’s almost nothing that can be traded with confidence without further price action to finalise some of the ongoing Swing set-ups.
You may recall that I’ve been trading the long side of GBP:NZD with success and although I’m no longer positioned, I think the original analysis still stands and I envisage further upside though I’m yet to take another position.
In the meantime here’s a quick comparison of a CAD:JPY and GBP:USD both of which offering similar scenarios on the Weekly time frame. I covered the previous CAD:JPY short as it was short term oversold, but now it’s rebounded I’m looking for an opportunity to re-enter this swing short ahead of it’s next leg down.
At the same time, GBP:USD has achieved a level I’ve waited considerable time for and although there’s absolutely nothing to suggest a short entry is imminent, it’s similarities with CAD:JPY on the Weekly time frame should be borne in mind even if only to avoid falling for the bullish appearance of smaller time frames.
The previous CAD:JPY swing short was taken from the break of the Weekly 200 MA and covered at last Week’s low. Price is now re-testing the underside of the 200 MA and I’m now looking for rejection ahead of a longer term swing short:
GBP:USD offers a similar looking set-up in that price has broken beyond the falling resisting trend line, but straight into potential resistance at the 200 MA, noting that this is the first test of the Weekly 200 MA in 4 Years and therefore breaking through this level is very unlikely to be an easy job.
Based on this, I’m looking for opportunities to enter swing shorts over the next Week or 2, but must have confirmation on smaller time frames before committing to a position:
I’ll detail of entries in either of these currency pairs in the comments section below this post as well as updating the trades log.