USD/CAD is about 50 pips away from 1.4250, which lines up with a descending channel resistance that’s also near the 200 SMA on the 1-hour time frame. And look, stochastic just hit the overbought territory!The pair hasn’t shown signs of sustained bearish pressure, so you can still start to load up positions in case USD/CAD doesn’t exactly hit 1.4250 before the bears attack.
Previous support levels like 1.4020 or 1.3925 would make for good targets if USD/CAD ends up holding its channel resistance.
If you’d rather buy the dollar against the Loonie, though, then you might want to wait until the pair breaks above the channel before you make your breakout plays.
Good luck and good trading this one!
I spy with my eye a potential SMA crossover for GBP/NZD!
Y’all can’t see it here but you should note that the last five (not including this one) SMA crossovers heralded some legit moves for GBP/NZD.This time around the crossover is accompanied by the pair knocking on the 2.1000 range resistance on the 4-hour time frame. Not only that, but there’s also a low key divergence on the chart!
Shorting at current levels would give you the best reward-to-risk ratio especially if GBP/NZD drops back down to its 2.0000 range support.
Not convinced that the pound will weaken against the Kiwi? That’s fine, you can also wait for the pair to make a clean break above 1.2100 and maybe enter at a strong breakout or a break-and-retest situation.
What do you think? Will GBP/NZD extend its upswing? Or will the bears step in and take control?