Trading FX is endlessly fascinating if you love looking at charts and trying to find patterns.
The 200 sma is the most significant moving average andis in my opinion a mandatory indicator on every chart.
Today on EURUSD the 200 day simple moving average was missed by a mere 9 pips on the Weekly time frame.
On USD/CAD the 200 day sma was missed by just 24 pips.
The Daily RSI/TDI on USD/CAD is reading 16.1 and the Weekly 26.5.
The Daily RSI/TDI on EUR/USD is reading 73.6 and the Weekly is reading 76.4
So EUR/USD is increasingly overbought and USD/CAD is increasingly oversold.
Both these pairs are screaming out for a correction of some kind.
I’m already SHORT EUR/USD and LONG USD/CAD with STOPS above and below their respective 200 sma.s.
Risk/Reward is off the scale if these positions make progress.