Who’s ready to trade more comdoll setups today? I hope you are, because these charts on NZD/USD and CAD/JPY are lookin’ too hot to miss!
First up is a nice and simple range play on NZD/USD’s 1-hour chart. As you can see, the bulls and bears are battling hard just above the .6800 major psychological handle that marks the range support.
What makes the setup more interesting is that .6800 is also just below the 200 SMA. Not only that, but stochastic also looks like it’s about to leave the oversold territory!
Will Kiwi bounce against the dollar today? A long trade would give you a good reward-to-risk ratio especially if you place your stops just below the support level that we’ve spotted.
You might want to wait for a bit of momentum, though. Those long wicks on the last two candlesticks don’t really spell bullish conviction to me!
After breaking above the range resistance that we spotted a couple of days back, CAD/JPY is now testing the 84.00 major psychological level.
As you can see, the 84.00 handle had served as support for the pair for most of 2018. This time around, the 100 and 200 SMAs hovering just above the level add to the pressure to make this chart a support-turned-resistance situation.
The cherry on top of the sweet setup is a bearish divergence that’s forming on the daily time frame.
Can the Loonie break above 84.00 and extend its recent uptrend? Or will the bears step in and force a move back down to CAD/JPY’s 2019 lows?
The pair hasn’t shown momentum on either side, so it’s still a tossup for now. That means y’all still have time to draw up your trading plans if you’re planning on trading this setup!
Whichever bias you choose to trade, make sure you use wide stops, aight? Don’t forget that currency crosses like these tend to see volatility like nobody’s business!