Earlier this week we talked about EUR/CAD possibly bouncing from the 1.4475 range support zone. Well, it looks like the bulls paid attention!
The pair is now chillin’ about 100 pips from the range support. Can’t really blame the bulls because the level is right smack at a mid-range resistance on the 4-hour time frame. What’s more, Stochastic is flashing “overbought” on the chart!
Think the bears will force another retest of the range support? Shorting at the first signs of bearishness would give you a nice reward-to-risk ratio especially if EUR/CAD drops back down to 1.4475.
If you think that euro bulls are just taking a breather, however, then you could also wait for EUR/CAD to break above the mid-range level and aim for a possible test of the 1.4700 range resistance area.
What do you think? Which way will EUR/CAD go?
Here’s one for the breakout traders out there! NZD/JPY looks set to extend its uptrend with a retest of a trend line that has been keeping the bulls supported since early December.
Buying at current levels is a good idea if you believe that Kiwi bulls will make pips rain until NZD/JPY hits its symmetrical triangle resistance.
Think we’ll see a downside breakout instead? After all, symmetrical triangles can break in either direction. If NZD/JPY drops below its trend line support, then we could be looking at a move to the 71.75, 71.50, or 71.00 previous areas of interest.
Watch this one closely, yo!