Welcome to the last trading day of the week!
Had enough of ranges yet? Let’s take a look at some FX market movers.
If you’re looking for trends, then you’ll definitely want to check out USD/CAD and NZD/CHF’s daily charts.
Which one will you most likely trade?
I know that we discussed the possibility of a Cup and Handle situation a few days back, but I gotta let you guys know that USD/CAD could still extend its downtrend.The pair is now trading near a trend line that has been serving as support and resistance since March 2020. That’s also around the 200 SMA and the 50% Fib retracement of the last major downswing!
Dollar bears can start placing them short orders at current levels and target USD/CAD’s 2021 lows for a good risk ratio.
If you’re not comfortable going against the current upswing, then you can also wait for a couple more bearish candlesticks to confirm a downside momentum.
Meanwhile, dollar bulls should be ready in case USD/CAD busts above the trend line and the 200 SMA. The 1.2880 zone is a good area to target though you can also aim for trips to 1.3000 or even 1.3400.
Not a fan of trading the U.S. dollar? I gotchu!NZD/CHF is now about 100 pips from the .6350 zone that lined up with a 50% Fib retracement and a trend line support.
Can Kiwi bulls get momentum in the next few days? Buying at current levels is a good bet if you believe that NZD/CHF will extend the uptrend that it had started in March 2020.
If you don’t think that NZD/CHF can return to its February highs, however, then you can make a trading plan for a possible break below the trend line support and then aim for areas of interest like .6200 or .5950.