No trend? No problem!
USD/CAD and GBP/NZD may be consolidating rn but they’re doing so at veeeeeery interesting levels.
Check them out!
USD/CAD buyers hit a ceiling at 1.2700, which isn’t surprising since sellers have been defending the level since late August.What makes the chart interesting today is that it’s showing a bearish divergence on the 1-hour time frame.
Dollar sellers can start loading positions at current levels though more conservative playas can wait for a bit of momentum before targeting support zones like 1.2600 or 1.2520.
Think USD/CAD is headed for an upside breakout instead? Make sure USD/CAD is trading firmly above 1.2700 or even September’s highs before you aim for resistance levels like 1.2900.
A couple of days ago, we thought that GBP/NZD would find support at the 1.9650 range floor.
Turned out, there were more bears than bulls in da house! GBP/NZD broke through 1.9650 and didn’t find support until it hit 1.9350.Now that the pound is headed higher, I got my sights set on the 1.9650 broken support. See, it’s not only near the 38.2% Fib retracement of the last downswing, but it’s also around the 100 SMA on the 1-hour time frame.
GBP/NZD still got about 200 pips before hitting the pullback opportunity, though, so y’all can still write trading plans if you’re planning on trading this one.
What do you think? Will GBP/NZD turn lower if it hits the 38.2% Fib? Will it go back to inside its broken range? Or will it turn lower without even saying hello to the Fib levels above?