It’s all about comdolls and retracements on today’s canvas, as we explore potential Fib plays on USD/CAD and NZD/USD’s charts. Get ’em while they’re hot!
NZD/USD is taking a chill pill from its selloff just below the .7000 mark, which is interesting since it’s also where the 100 SMA is on the 4-hour chart.
Know what makes the setup more interesting? Take another look at the chart.
As you can see, NZD/USD is also near the 38.2% and 50% Fibonacci retracement levels AND is around the previous resistance areas.
Will NZD/USD bulls take charge and extend the pair’s uptrend? Or will the bears drag it down to the 61.8% Fib or the 200 SMA before letting the bulls get some pips?
Let me know what you think!
After breaking below a long-term trend line support, USD/CAD looks ready for a retest.
The 1.3300 major psychological handle is the level to watch, as it lines up with an area of interest for the pair.
In this case, “area of interest” means that it had served as support and resistance, is near the 100 and 200 SMAs, and is also around the 50% Fibonacci retracement on the daily chart.
The pair is still a few hundred pips away from the level, though, so y’all can still work on a trading plan if you’re planning on trading this setup.
You can buy at current levels and let go at the 1.3300 mark or at the earliest signs of bearish momentum, or you could wait for an actual retest of 1.3300 and get a better entry on a longer-term reversal for USD/CAD.
Whichever bias you’re trading this week, make sure you use your best risk management practices as if your pet’s next meal depends on it!