We’re taking on commodity crosses today!
Think you can make pips from these setups?
CAD/JPY is hovering just under the 82.00 major psychological handle that’s right smack at an ascending triangle resistance.What makes the setup more interesting today is that Stochastic is flashing an overbought signal on the 4-hour time frame.
If the bears get their momentum, then you can sell the Loonie at current prices, place your stops just above the 82.00 resistance, and aim for key inflection points near 81.40 or 81.00.
Think we’ll see some CAD-buying instead? If CAD/JPY breaks above its triangle resistance, then the pair could visit previous resistance levels near 83.00 or even 84.30.
GBP/NZD is trading right at a major area of interest and major psychological level of 1.9100. This level previously served as a major support area in 2020 before being broken in December. Is it now resistance?
Well, we’ve got a potential argument for technical bears to hop in, not only as resistance forms on at 1.9100, but potentially from the falling moving averages, especially the 100 SMA which the pair is now retesting.
If the bears do take back control, and based on the daily ATR of around 150 pips, look for a move to the 1.9000 major psychological level by the end of today’s session, or even possibly a move to 1.8900 by the end of the week.