There are several good channel trades developing right now. I mean, like 10 different pairs look to be consolidating all at the same time. It's so strange that sometimes you'll go days without seeing anything trade worthy and then all the stars line up and you have 10 different trades to pick from. Weird. I'll give you a few examples of what I'm talking about.
Look at the channel for the USD/JPY. This pair has been channeling nicely since the early morning hours of Thursday, April 9. In the near term there is about 100 pips on either side of the channel until you hit resistance. Longer term, there is resistance at about 106 on the high side and 97 on the low side. This pair is not as volatile as, say, the Loonie, but it can still move.
The Dollar/Loonie has been trending slightly upward for a couple of days now. This can be a very volatile pair and I expect that it will break out of its gentle rise by either jumping up or down and a quick clip. There is significant resistance at the recent highs around 1.3000 (725 pips above the current price) and at 1.1800 (almost 500 pips below the current price) so the move could be big.
The Aussie/Dollar pair has been in a 30 pip or so channel since Thursday mid-day (EDT). One would expect that it will break up or down at some point soon. The 800 sma is about 450 pips below the bottom of the channel and there is some resistance at about 1000 pips above the upper channel. So, whichever way it goes, it could go big.These are just a few of the trades shaping up. They are not "Trade Ideas" in the normal sense, but I might take some or all of them. In addition to these, look at the EUR/JPY, EUR/CHF and the GBP/USD. All of them look interesting. I'll keep you posted as things develop.
Happy Trading!
