Partner Center Find a Broker

Whether you’re into trend trading or breakouts, I’ve got some setups worth watching on today’s canvas!

Check out these potential plays on the 4-hour charts of EUR/NZD and CAD/JPY.

EUR/NZD: 4-hour

EUR/NZD 4-hour Forex Chart

EUR/NZD 4-hour Forex Chart

This forex pair has been forming higher lows since November last year, cruising above a rising trend line visible on its 4-hour time frame.

Is the trend still our friend on EUR/NZD?

A correction to the trend line support seems to be underway, and price could find more buyers around the Fib levels. In particular, the 50% to 61.8% Fibs span an area of interest around the psychological levels 1.6950 and 1.7000, so traders might be waiting with their long orders right there.

Stochastic is already on the move up, though, and EUR/NZD seems to be bouncing off the 38.2% Fib that lines up with the 100 SMA dynamic support. Also, the 100 SMA is above the 200 SMA to confirm that the trend is more likely to resume than to reverse.

I’d stay on the lookout for an upside break from the short-term consolidation since this might signal that the pair is ready to head up to the swing high at 1.7360 or higher.

CAD/JPY: 4-hour

CAD/JPY 4-hour Forex Chart

CAD/JPY 4-hour Forex Chart

Here’s one for the momentum hunters out there!

CAD/JPY has formed higher lows and lower highs to consolidate inside a triangle pattern, and the pair has just bounced off the bottom.

Price is just halfway through on its climb back to the top, so there might still be some room to join in the rally. After all, Stochastic is still heading north, so CAD/JPY could follow suit while bullish pressure is in play.

If Loonie bulls are strong enough, they might even charge past the triangle top and go for an uptrend that’s the same height as the chart formation. That’s roughly 200 pips yo!

Then again, the 100 SMA is below the 200 SMA to suggest that resistance is more likely to hold than to break. If you’re bearish on this one, keep your eyes peeled for reversal candlesticks around the 91.00-91.50 levels.