Loonie-trading friends gather ’round!
I hope you like trading the comdoll because NZD/CAD is showing a possible Double Bottom while GBP/CAD is about to hit a major support zone.
Get ’em while they’re hot!
Did you know that NZD/CAD has been on a downtrend since early September?The pair has found support at .8625 but the bulls would have to show more enthusiasm if they want to push the Kiwi above the .8680 Double Bottom “neckline” on the 4-hour time frame.
Will we see an upside breakout for NZD/CAD? A break above the major area of interest that we’ve marked could push the Kiwi to the .8750 zone that’s close to the 100 SMA.
If NZD/CAD gets rejected at the short-term resistance, though, then we could be looking at a move back down to (or maybe even beyond) October’s lows.
Watch this one closely!
Feeling like trading long-term ranges instead?
Two weeks ago, we monitored GBP/CAD after it dropped from the 1.7600 long-term range resistance on the daily.The tides have turned since then and now GBP/CAD is almost at the 1.6850 long-term support. What’s more, Stochastic is flagging the pair’s oversold conditions!
Buying at the first signs of a bounce would yield a good risk ratio especially if the pound pops back up to the 1.7275 mid-range or 1.7600 range resistance levels.
If you’d rather trade the current downtrend, though, then you can wait for the recent upswing to run its course and see if it leads to pullback or downside breakout opportunities.