Partner Center Find a Broker

Welcome to mid-week trading, errbody!

We’re looking at a mix of majors and crosses today as we check out a possible continuation on USD/JPY and a retracement opportunity on NZD/CAD.

Get ’em while they’re hot!

USD/JPY: 1-hour

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

I spy with my eye a potential falling wedge pattern!

See, USD/JPY has taken a breather after rising by more than 200 pips since the end of July.

If you’ve read your School of Pipsology, then you’ll know that wedges like these can lead to an extension of USD/JPY’s upswing.

What makes the pair more interesting today is that the pattern’s support is right smack at the 100 and 200 SMA crossover on the 1-hour time frame.

Will we see more upside moves for USD/JPY? Buying at current levels is your best bet if you believe that USD/JPY will break above 106.50 and make new highs this week.

Not convinced of the dollar’s strength? That’s fine, you can also position some short orders below the SMAs and then aim for a move back to July’s lows.

NZD/CAD: Daily

NZD/CAD Daily Forex Chart
NZD/CAD Daily Forex Chart

This one’s for the swing and position traders out there!

NZD/CAD is headed fast for the .8760 zone, which lines up with a 38.2% Fib and is a legit area of interest in the daily time frame.

Think we’ll see some buying at the Fib support? The pair is still a few pips away from the level, so you can still write them trading plans if you’re entering positions on this one.

You can buy at any of the Fib levels or even at the earliest signs of bullish momentum if you think that NZD/CAD can revisit its highs above .8950.

If you believe that Kiwi bears are just getting started, however, then you can also short at current levels and then just bail as soon as you see weakness in the bearish momentum or a support level holding.

What do you think? Which way will NZD/CAD go in the next couple of days?

Forex Chart Settings:

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