Got the Monday blues, kid? Let NZD/USD turn that frown upside down! Set your eyes on that sweet little setup on the 4-hour chart. It looks like we may have a chance to buy NZD/USD cheap. Right now, the pair seems to be testing the rising trend line. Momentum looks as though it may be about to shift in the favor of bulls as Stochastic is showing a bearish divergence from price and is deep into oversold ground. But be careful, bulls! Though the pair could eventually rise back up to .7640, I would wait for a few confirmatory candlesticks (maybe a doji or two) before going long. As for those siding with the bears, it might be best to wait for the trend line to break down before shorting the pair.
Looks like USD/CAD couldn’t hold on to parity for long! After reaching a low of .9980, the pair bounced right back up. Is it in the mood for a retracement now? Looking back a few weeks ago, the pair was stuck inside a box with a bottom around the 1.0200 area. Since that support level already broke, it could switch gears and turn into a resistance level now. Coincidentally, that area lines up with the 61.8% Fibonacci retracement level. The Stochastic is in the overbought region but still hasn’t made a crossover, which means that the pair could still have enough energy to climb back to resistance near 1.0200.
Yo dawg, if you feel like you’ve seen this setup before, it’s not because you’re experiencing de ja vu. It’s because the range on AUD/JPY just won’t break down! In fact, you would’ve cashed out plenty of times had you decided to just play the range on the 4-hour chart. But don’t fret, playa. You may get another chance to get in on this action as the pair appears to be on its way to test support in the area of 80.00. By the way it’s indicating overselling, Stochastic seems to be siding with the bulls, which means it may just be a matter of time before the pair finds itself at the top of the range again. But who knows, it might finally be time for bears to take over and force the pair to break support and create a new monthly low!