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Wednesday brings us three awesome trading setups: EURUSD, USDCAD and CHFJPY

Tomasz Wiśniewski

It looks like USDCAD is ready to finish the bearish correction. The price bounced from the mid-term up trendline and lower line of the flag. What is more, we are still above the long-term down trendline. For the proper buy signal, we need to see the breakout of the red horizontal area and the upper line of the flag.

It looks like EURUSD is getting ready for another bearish wave. The beginning of the week was for the buyers. They managed to pull the price higher after the bounce from the neckline. The pull-back reached the horizontal resistance and the 38,% Fibo. That was it. The current candle is negative and it looks like the sellers are making another attempt to break the neckline.

For the past two days, CHFJPY was trying to defend the lower line of the long-term wedge. Today, sellers crashed this stronghold, which confirms the long-term sell signal created by the double top formation and two shooting stars on the weekly chart. That is potentially an awesome trade with a desirable risk to reward ratio.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire

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