Remember the symmetrical triangle play that we spotted a few days back? Well, price has broken the pattern! Not only that, but it’s now retesting the broken resistance level.
Are we looking at a break-and-retest play in the making? Buying at the earliest signs of bullish momentum would get you in at a good spot especially if you place your stop losses just below the broken resistance and NZD/CAD pops back up to its .8500 highs.
If you’d rather sell NZD/CAD, however, then you might want to wait until the pair breaks below its current consolidation AND the 100 and 200 SMAs before you aim for previous support levels like the .8300 area.
Whichever bias you choose to trade, make sure you make (and follow) a trading plan so you know what to do in case prices don’t behave as we expect them to!
GBP/CHF is having trouble making new highs above 1.2800, which isn’t surprising since the major psychological handle also lines up with an area of interest in the past.
Think we’ll see pound weakness against the franc? Don’t forget that a consolidation still represents uncertainty among buyers and sellers about where price is headed next. That means a downside move is not a done deal just yet!
The Fib levels on the daily chart make for good profit targets if you’re planning on shorting GBP/CHF. An upside breakout, on the other hand, could lead to retests of the 1.3450 previous resistance levels.