GBP/NZD just busted through the 2.0100 psychological area and it looks like it’s ready to take on the 2.0175 – 2.0200 zone!
Can the bears stop the bulls’ momentum? As you can see, 2.0200 is right around a descending channel resistance that hasn’t been broken since mid-October. Not only that, but price is also near the 100 and 200 SMAs!
It doesn’t look like the bullish candlesticks are gonna stop anytime soon, so y’all might have to wait until we see consolidation or bearish momentum before you bet on GBP/NZD extending its downtrend.
If you’re planning to short NZD, then you’ll want to place your stops just above the channel and aim for November’s lows for maximum reward-to-risk ratio.
But wait! MarketMilk warns that GBP/NZD’s upward momentum isn’t going to let up anytime soon. As you can see, it’s still “bullish” on the short-term SMAs and “bearish but possibly weakening” on the longer SMAs.
If you’d rather trade an upside breakout, then make sure you do so AFTER GBP/NZD has closed a candle well above the channel resistance area.
Good luck and good trading this one, yo!
NZD/CAD: DailyFib playas huddle up! NZD/CAD just turned from the .8650 handle, which is right smack at a 61.8% Fibonacci retracement on the daily time frame.
Oh, and look! .8650 also lines up with a previous support area!
Shorting at current levels would make for a good trade especially if NZD/CAD drops back to its October lows near .8300.
Think NZD/CAD is due for an upside breakout instead? You can wait for a clean break above the 200 SMA and aim for previous areas of interest near .8850 – .8900 and still make good pips.
Whichever direction you choose to trade, make sure you’re placing a wide enough stop so you don’t get taken out of the trade before NZD/CAD really moves in one direction. Here’s a guide so you know how much the pair usually moves in a day!