Who’s up for some comdoll trading?
I hope you are because NZD/USD is chillin’ near a range resistance while USD/CAD is sporting a break-and-retest opportunity!
Get ’em while they’re hot!
It was a tough battle but it looks like the Kiwi bulls were able to defend the .6900 range support that’s been around since mid-June.Now that NZD/USD is sitting at the .7000 major psychological level, at least some bears may be tempted to take a bite. Of course, it won’t hurt them that Stochastic is hanging out at the overbought territory.
Will NZD/USD find resistance at .7000? You can short the Kiwi as soon as you see a couple of red candlesticks if you’re confident that the comdoll would revisit its .6925 – .6900 previous lows in the next trading sessions.
If you think that the bulls are just taking a breather, though, then you can also place long orders above last week’s highs and aim for the .7100 previous resistance area.
What do you think? Which way will NZD/USD go this week?
If you’ve been watching USD/CAD’s long-term trend, then you’ll know that the pair recently hit the 1.2800 psychological handle before dollar bears said, “Hold up. Time for a pullback, our dudes.”The pair is now sitting at the 1.2500 zone that’s near the 50% Fib retracement of the last upswing as well as the broken trend line resistance on the daily time frame.
Think the dollar will extend its upswing against the Loonie? Look for USD/CAD firmly trading above the 200 SMA, which could lead to the pair revisiting the 1.2950 inflection point.
If you see USD/CAD staying under the broken trend line resistance, though, then the pair may return to its longer-term downtrend and make its way to May’s lows.