Who’s in the mood to trade the comdolls? I hope you are, because I’ve got nice swing and position trade opportunities on USD/CAD and GBP/NZD. Check it!
USD/CAD is throwing out dojis around the 1.3100 major psychological handle, which isn’t surprising since it’s also right at a falling channel resistance on the 4-hour time frame.
What makes the setup more interesting is that the 100 and 200 SMAs are also chillin’ in the area while stochastic is flashing an overbought signal.
Think the Greenback is in for more pain against the Loonie? Shorting at the earliest signs of a bearish momentum is a good idea especially if you aim for the previous lows near 1.2900. Just make sure you don’t tighten your stops too much, aight?
Here’s one for the range playas out there! GBP/NZD just got rejected at the 1.9600 major psychological handle, which marks a range resistance that hasn’t been broken since the start of the year.
Shorting at current levels and placing your stops just above 1.9600 could give you a good reward-to-risk ratio. And, with stochastic just hitting overbought territories, you could even aim for the range support near 1.8950.
Just bear in mind that currency crosses like these tend to see more volatility than the majors. That means y’all gotta be prepared in case GBP/NZD doesn’t sustain a bearish momentum and price action goes all over the place!