Welcome to the last trading day of the week! Let’s see if you can catch last-minute pips with not one, but TWO Fib-related setups on NZD/USD and CAD/JPY. Check it!
NZD/USD is seeing upside momentum after finding support at the .6250 minor psychological area.
Before you buy NZD/USD like there’s no tomorrow, though, you should note that the .6500 handle is a BFD for Kiwi bulls and bears.
Aside from the level serving as support and resistance area, it also currently lines up with a 50% Fibonacci retracement AND the 100 SMA on the daily chart!
Will Kiwi bears charge at a .6500 retest? Shorting at the first signs of a bounce makes for a good play especially if you believe that NZD/USD will drop back down to its October lows.
If you’d rather buy the Kiwi, however, then you could also go long at current levels and then bail at the earliest signs of a resistance.
Watch this one closely, yo!
Breakout warriors huddle up! CAD/JPY turned lower after hitting 83.50, which isn’t surprising since the level is an area of interest for the pair.
The chart is particularly hot this week because CAD/JPY is about to reach the 81.50 levels. As you can see, the area lines up with a previous resistance, 50% Fibonacci retracement, AND a broken trend line resistance on the daily chart.
Are we looking at a break-and-retest opportunity here? The pair is almost at the 81.50 zone, so I hope you can whip up a trading plan faster than you can say “pips!”
Buying at the first signs of bullish momentum would make for an excellent trade especially if CAD/JPY ends up jumping back to its H1 2019 highs.
If you’d rather short CAD/JPY, though, then you might want to wait for the pair to comfortably trade below the broken trend line before you pull the trigger on any short position.
Whichever direction you choose to trade, make sure you use wide stops like all them sane traders out there!