I’m serving up a Loonie special today, forex brothas! I’ve got a hot one on NZD/CAD’s 1-hour chart and a sweet retracement play on EUR/CAD’s daily time frame!
First up is a nice and simple ascending triangle on NZD/CAD’s 1-hour time frame. As you can see, Kiwi bulls have been in control since the pair encountered a triple bottom-like support at .9550 earlier this month.But the bulls ain’t no match for the bears defending the .9680 psychological handle! Well, at least for now. The tug-o-pip at the level has resulted in an ascending triangle on the chart.
With NZD/CAD about 30 pips from the triangle resistance, it would be interesting to see if the bulls will have muscle in their hustle for an upside breakout. A break above said resistance area could lead to at least a retest of the June highs near .9750.
Meanwhile, another bounce from the level could drag the pair back to the trend line near the 100 and 200 SMAs and postpone the another confrontation for another day. Keep close tabs on this one, will ya?
Here’s one for euro traders out there! EUR/CAD is chillin’ like ice cream fillin’ on the 1.4750 psychological handle, which isn’t surprising since the level is has not only served as resistance in the past, but is also right smack at a 38.2% Fibonacci retracement on the chart.
What makes the setup even hotter is that the 100 SMA has just crossed above the 200 SMA at a time when stochastic looks like it’s about to bust out of the oversold territory.
Think the Loonie is about to eat the euro’s dust? A bounce from the 38.2% Fib could propel the pair to the 2017 highs near 1.5350. Just make sure you use wide stops, aight? Currency crosses like these can see volatility like nobody’s business!