Whether you like trading comdoll crosses or you favor the major comdoll pairs, I got yo back with hot forex trade opportunities on USD/CAD and EUR/NZD. Get ’em while they’re hot!
EUR/NZD is confined in what looks like a symmetrical triangle on the 1-hour chart.
According to the School of Pipsology, breakouts of triangles like these tend to be as wide as the height of the base of the triangle. We’re talkin’ 300 pips in this case, yo!
Another thing to remember about symmetrical triangles is that it’s an indecision pattern that has no particular bias.
If it breaks below its trend line support, then we could be looking at a retest of the .7200 or .7050 previous areas of interest. An upside breakout, on the other hand, could boost the pair to the .7850 – .7900 previous resistance levels.
Watch this one closely, forex friends!
Is USD/CAD ready to reverse? As you can see, the 100 SMA has just crossed below the 200 SMA on the daily chart.
What makes the setup more interesting is that there might be a descending channel in the works for USD/CAD.
The pair is close to the channel’s “resistance,” so shorting at the earliest signs of bearish momentum and aiming for at least the 1.3000 levels would yield a good reward-to-risk ratio.
Not convinced that USD/CAD’s long-term uptrend is over? You could also wait for a break above the channel we’re watching and use previous resistance areas like 1.3500 and 1.3625 as initial profit targets.