July is right around the corner, and it heralds the start of the year’s second half. In this article, I hope to share with you, my dear readers, a few of my trade ideas for July in hopes that it fetches you all some sizable profits and makes your July fun and fruitful. Let’s go!
AUDCAD – W1 Timeframe
Let’s take a look at AUDCAD first of all. Here we see the wick of the current weekly candle resting on top of a trendline support that cuts across the drop-base-rally demand zone. Also, there is a clear break above the previous structural high, with a retest at 76% of the Fibonacci retracement zone. In line with these criteria, I would expect to see AUDCAD get rejected from the demand zone with a bullish price action extending to the 38% region of the Fibonacci retracement.
- Direction: Bullish
- Target: 0.91267
- Invalidation: 0.86010
The price action on USDCAD appears pretty obvious. We can see a rally-base-rally demand zone that aligns with the 200 and 100 period moving averages as support and 76% of the Fibonacci retracement. In this scenario, I expect USDCAD to rise to 24% of the Fibonacci retracement since we also have a trendline support as an added confluence in favor of a bullish rebound.
- Direction: Bullish
- Target: 1.35727
- Invalidation: 1.30139
GBPCAD presents another interesting setup. In this case, we even see price trading at an intersection of two resistance trendlines – one of my favorite confluences for trend continuation trades. In addition to these, we also have a rally-base-drop supply zone, a 200-period moving average resistance, and the 88% Fibonacci retracement level as resistance. Did you notice the moving averages? They are also arrayed in a clear bearish order, meaning we have at least five confluences in favor of a bearish outcome on GBPCAD.
- Direction: Bearish
- Target: 1.58063
- Invalidation: 1.70099
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.