EUR/CAD looks like it’s breaking below the 1.4600 major psychological handle, which opens the pair to a possible move to the 1.4520 – 1.4550 area.
Before you sell the euro like there’s no tomorrow, though, you should first know that technical indicators such as Stochastic, Williams %R, Bollinger Bands, and Keltner Channel are all saying that the pair is already “oversold” on the 4-hour time frame.
So, which way will EUR/CAD go? Shorting at current levels can still yield you a pip or two (or fifty) especially if the pair keeps up its bearish momentum and only starts finding support around the 1.4550 handle.
If you’d rather buy the euro against the Loonie, however, then you might want to wait for a support level to emerge, if not the beginnings of a bullish momentum before you aim for previous highs near 1.4750.
Don’t look now, but GBP/NZD is hitting a potential support area! The pair is juuust testing the 2.0000 major psychological handle, which is right smack at an ascending channel support on the 4-hour time frame.
What makes the setup more interesting is that the level also lines up with a previous area of interest for the pair.
Will the bulls take notice and attack? Buying at current levels would give you a good reward-to-risk ratio especially if you place your stops just below the channel and aim for October’s highs near 2.0500.
If you don’t feel like buying the pound against Kiwi, however, then you can also wait for the pair to break below the channel and aim for previous support levels near 1.9600 or even 1.9350 instead.
Not sure how wide you should set your stops? Check out GBP/NZD’s HOURLY volatility for the past 30 days!