Who’s up for trading comdoll crosses today? I hope you are, because GBP/NZD’s triangle and CAD/JPY’s uptrend patterns ain’t gonna trade themselves!
As you can see above, GBP/NZD has been on an uptrend since late August. However, pound bears started fighting back around mid-September and now it looks like we might have a triangle breakout in the making.
The noose is tightening for pound and Kiwi players as GBP/NZD’s triangle consolidation tightens. But which way will the pair go? The odds are (slightly) favoring the bears with an SMA crossover and an almost overbought stochastic signal on their side.
But remember that a symmetrical triangle can break in either direction. This means no pre-emptive positioning, yo! A more profitable scenario would be to wait for a breakout and maybe a break-and-retest situation before committing to a direction.
The pair is about to reach the end of its triangle consolidation, so y’all better have your breakout playbooks ready!
Here’s one for my trend playas out there! CAD/JPY is having trouble breaking below the 90.00 major psychological handle, which isn’t surprising since it lines up with a 38.2% Fibonacci retracement an 100 SMA support on the 4-hour chart.
Stochastic is already poppin’ up an oversold signal, so some bulls might already jump in at current prices. But if you think that yen bulls still have some muscle in their hustle, then you could also wait for a possible retest of the 89.50 area of interest near the 50% Fib and bottom of the rising channel before buying the Loonie.
Meanwhile, Loonie bears can wait for a break below said support levels. In any case, make sure y’all use wide stops when trading crosses like these, aight? After all, they tend to see more volatility than your average dollar pair!