Partner Center Find a Broker

Is it me, or are AUD/USD and USD/CAD hanging out at key Fib retracement levels?

I mean, have you seen their 4-hour charts lately?

If you haven’t, then you’ll want to check these out!

AUD/USD: 4-hour

AUD/USD 4-hour Forex Chart
AUD/USD 4-hour Forex Chart

AUD/USD is finding support just under the .7850 zone, which isn’t surprising because the minor psychological level lines up with a 61.8% Fib retracement, trend line retest, and a key resistance level from January and early February.

The cherry on top of this sweet setup is a bullish divergence on the 4-hour time frame.

Aussie bulls can start nibbling at current levels in case AUD/USD shoots up from the trend line area.

You can also wait for a couple of green candlesticks or clear bullish momentum if you’re not too excited to jump in on the February uptrend.

Meanwhile, Aussie bears can catch a possible downside breakout by placing orders just below the SMAs and aim for dips to the .7730, .7680, and .7600 previous infection points.

USD/CAD: 4-hour

USD/CAD 4-hour Forex Chart
USD/CAD 4-hour Forex Chart

Wanna see a same-ish trade but in reverse? This one’s for you!

USD/CAD is flirting with the 1.2600 major psychological level that’s right smack at a 50% Fib retracement and a support level in January and the first half of February.

Shorting at current levels is your best bet if you believe that 1.2600 will hold as resistance and that USD/CAD will drop back down to its February lows.

If you say “Nah, bruh, I’d rather short near the trend line and the SMAs. Risk ratios, ya know?” then you can do that too. I ain’t gonna stop ya!

If the current consolidation ends in USD/CAD breaking above the trend line, though, then you’ll definitely want to get in on a potential reversal by placing orders above the SMAs and then targeting January’s highs of the big 1.3000 handle.