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It’s all about the comdolls on today’s canvas, as we take a look at a potential trend retracement on EUR/NZD and a break and retest on USD/CAD‘s chart.

EUR/NZD: 1-hour

EUR/NZD 1-hour Forex Chart
EUR/NZD 1-hour Forex Chart

EUR/NZD is testing the 1.6800 major psychological handle, which is about 25 pips away from an ascending channel support that has been pushing the pair higher since late December.

If it ends up finding support at current levels instead of the channel and 200 SMA support, then you can jump in as soon as you see a bullish momentum. 1.6850 and 1.6900 look tight as potential targets in this case.

Not sold on buying the euro against the Kiwi? That’s aight, you can also wait to see if the current bearish run ends up breaking the trend line and 200 SMA support. In this case, you might want to set your sights on 1.6730 or even 1.6700 as potential profit targets.

Whichever bias you end up trading, make sure you stick to your trading plan like white on rice, ya hear?

USD/CAD: Daily

USD/CAD Daily Forex Chart
USD/CAD Daily Forex Chart

Remember that broken triangle support level that we talked about earlier this month? Well, the bulls had enough mojo for a retest!

For now, USD/CAD looks ready to break below its consolidation around the 1.3050 triangle support. 1.2960 is a good initial target if USD/CAD ends up extending its losses. Y’all can also target previous areas of interest closer to 1.2900 and 1.2850.

If you’d rather buy the dollar against the Loonie, however, then you better make sure that USD/CAD breaks above last week’s highs before you jump in. In that scenario, 1.3150, 1.3200, and 1.3250 would make for good potential targets.

Not sure on how big of a stop you should choose? Check out MarketMilk’s volatility analysis for clues!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line