It’s all about the Loonie on today’s canvas, as we check out channel plays on CAD/JPY and NZD/CAD. Check ’em out while they’re hot!
As you can see, CAD/JPY is having trouble breaking above the 84.00 handle, which isn’t surprising since it’s also right smack at the 200 SMA and falling channel resistance areas.
Shorting at current levels could give you a good reward-to-risk ratio especially if you aim for the previous lows near 82.00. Meanwhile, Loonie bulls could wait for a break above the levels we’ve identified before pulling the trigger.
Whichever bias you choose to trade, don’t forget to leave some room for volatility, aight? After all, currency crosses like these can see volatility like nobody’s business!
NZD/CAD almost (but didn’t quite) hit the support level that we spotted a couple of days back, but it looks like the channel support is holding up pretty well!
The pair looks like it’s about to bounce from the .8850 – .8900 area, which makes sense given that stochastic is also flashing an oversold signal.
Will Kiwi make it to the mid-channel area near .9150? Or will the bears step in to finally break the uptrend that’s been solid since November?
Keep close tabs on this one, brothas!