Good morning, forex fiends! Got both trend and consolidation setups to kick off the new trading week. Check out the Fibs on EUR/NZD & triangle on GBP/CAD!
Another breakout alert! Sterling pairs have been full of them in recent weeks, this time on GBP/CAD!
But much like the GBP/AUD setup I looked at last week, let’s take note that the pair has yet to break past above the 200 SMA, so I wouldn’t necessarily look for a long play until then. Also, the stochastic indicator is showing potentially oversold positions conditions, so if that swings higher, it’s another argument for going long the pair.
A downside break is the likelier next move as the pair is in a longer-term downtrend, but as standard practice with any triangle setup, you might wanna wait for a break below to higher “lows” before going with a short position.
Now for you trend playas out there, we’ve got EUR/NZD stalling on its most recent bounce, right around the 38% Fibonacci retracement level. Fibs are closely watched by trend traders for jumping into a directional move at a slightly better price, and with the market already stalling and dipping lower, we could be in the midst of another leg lower.
Just make sure you use wide stops, aight? Depending on upcoming catalysts, we could see another move higher to the 50% and 61% Fibs before short players are really ready to hop in the trend. Plus, with the pair now trading above the moving averages, technical traders who have been waiting to long the pair may start nibbling here. Be aware and trade safe!