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3 Setups On GBP/USD, USD/JPY And EUR/CAD

Published 02/01/2019, 03:50 AM

Today we will have the closely-watched NFP report from the US. Nobody knows what we should expect. Yes, we do have a number in mind but nobody knows what was the influence of the government shutdown.

Ahead of this number, GBP/USD is in a short-term pennant formation (blue lines). Pennant is a trend continuation pattern, so in theory, should result with the breakout to the upside. As long, as we are inside of this pattern it is still too early to trade but as for now, buyers can be optimistic.

Next setup can be found on the USD/JPY. Here, at the beginning of the week, the price broke the mid-term up trendline (blue), which was supporting the local correction. Few days ago, USD/JPY managed to break another support (orange line). Today, the price is aiming higher, to test the second support as a closest resistance. As long, as w stay below the orange line, the sentiment is negative.

Now something more exotic, but actually, I think that this can be the strongest setup here. Yesterday, EUR/CAD managed to break the horizontal support made by the lower line of the descending triangle pattern. Today, we are testing this support as a resistance. Two hourly candles are quite negative and their long heads are promoting a further drop. That is a very promising bearish situation.

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