We’re lookin’ at the Loonie today, ladies and gents (and everyone in between)! Check out these hot support and resistance plays on CAD/JPY and NZD/CAD and see if you’re into them!
NZD/CAD is testing the .9125 area after hitting resistance at the .9200 major psychological level. That means it’s now 25 pips away from the .9100 handle, which is right smack at a range support that the pair had broken earlier this month.
Can the pair bounce from the level? As you can see, it’s also near a 38.2% Fibonacci retracement on the 4-hour time frame.
A long trade at the earliest signs of a bounce is a good idea if you believe that the Kiwi will extend its uptrend against the Loonie.
If you think that the trip to .9200 is a fluke, however, then you could also wait until NZD/CAD goes back to the range and trade a possible move back to the .8940 range support.
Keep close tabs on this one!
I spy with my cool, blue eyes a support-turned-resistance opportunity in the making!
CAD/JPY is almost at the 83.50 levels, which is right smack at the rising trend line that the Loonie had broken a few days ago.
What makes the setup more interesting is that 83.50 is also near the 38.2% Fib retracement AND the 200 SMA on the 4-hour time frame.
The cherry on top of this sweet setup is an overbought stochastic signal.
Are we about to see CAD/JPY rejected at the 83.50 area? Or can the bulls sustain the bullish momentum until the pair hits the higher Fib levels?
The pair hasn’t shown a bearish momentum yet, so y’all still have time to draw your trading plans if you’re thinking of trading this one.
Whichever bias you trade, make sure you practice good risk management decisions, aight? No use trading fancy setups and systems if you can’t trade for another day!