Comdoll playas huddle up!
Get ’em while they’re hot!
USD/CAD found support at the 1.3165 area and it looks ready for another retest of a descending trend line that hasn’t been broken since the start of the month.Will the dollar extend its losses against the Loonie? Shorting near the trend line would make for a good trade especially with the 200 SMA sticking to the trend line like white on rice.
Before you place your sell orders, though, you should also note that USD/CAD is poppin’ up higher lows. This could lead to a symmetrical triangle situation that might lead to the dollar breaking out in either direction.
New to triangle trading? An important thing to remember is that breakouts can be as strong as the height of the base of the triangle. That’s just under 150 pips in this case! Make sure you factor that in your reward-to-risk calculations if you’re planning on trading this setup.
Earlier this week, we talked about GBP/NZD possibly finding support at the bottom of the channel that happens to line up with the 200 SMA.
Well, I hope you got tons of pips from trading the bounce! GBP/NZD has not only bounced from the level, but it has also broken ABOVE the channel that we’re watching. What a boss move!The pound is now testing its broken channel resistance level, which would’ve been attractive for the bulls if it’s not right smack at a double top neckline on the 1-hour time frame.
Thinking of trading this one? You might want to watch how it reacts to the 2.0200 support first. If the previous resistance turns into a support level, then GBP/NZD could make new highs in the next trading sessions.
If the pair breaks below the double top neckline and trades below 2.0200, however, then we can see at least a 70-pip dip or even a revisit of the 2.0086 previous resistance level.