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Swing and Position traders gather ’round!

I don’t know if you’ve noticed, but GBP/NZD is testing a channel support while AUD/CAD looks ready for a pullback.

Check out these daily charts and see if you can make pips from their moves!

GBP/NZD: Daily

GBP/NZD Daily Forex Chart
GBP/NZD Daily Forex Chart

The New Zealand dollar is getting a lot of love today after the Reserve Bank of New Zealand (RBNZ) hinted of a rate hike next year.

GBP/NZD is currently sporting a yuuuge red candle that points to a possible trip to the 1.9300 psychological area where the 100 and 200 SMAs are on the daily time frame.

Will the SMAs act as support for another day? Pay attention to how the current candlestick closes.

If it looks like the bulls are respecting the SMAs and the trend line support, then we could be looking at a good entry spot for GBP/NZD’s trend continuation and a return to the 1.9700 highs.

But if NZD continues to leave its major counterparts eating dust, then GBP/NZD could drop to the 1.9150 inflection point and even take a shot at a trip down to 1.8950.

AUD/CAD: Daily

AUD/CAD Daily Forex Chart
AUD/CAD Daily Forex Chart

AUD/CAD has broken below an ascending channel support but has found buyers around the .9300 psychological level.

Aussie bears who believe that the downside breakout is legit can look for shorting opportunities near the Fib retracement levels.

While the 61.8% Fib is closer to the broken trend line and the SMAs, traders have reacted more to the .9530 zone near the 50% Fib.

Feel like buying the Aussie instead? You can take advantage of the bullish divergence on the daily time frame and ride the potential upswing until AUD/CAD hits the Fib levels or the bullish momentum runs out of steam.

Whichever bias you end up trading, make sure you’re practicing your best risk management moves when you execute your trading plans!