Who’s up for swing trading comdolls?
I hope you are because GBP/CAD is in a sweet spot for trend playas while NZD/JPY looks ready for a reversal.
Check these setups out while they’re hot!
GBP/CAD has been trading in a downtrend since mid-February when the pair got rejected from the 1.7400 psychological handle.
Will the trend be GBP traders’ friend this week?GBP/CAD is hanging out just below the 1.5900 psychological handle that’s also near a descending channel resistance on the 4-hour time frame.
But wait, there’s more! Note that GBP/CAD’s current prices are also right around the 100 and 200 SMAs on the chart.
Shorting at the first signs of bearish momentum would make for a good trade if you believe that GBP/CAD isn’t done with its downtrend just yet.
June’s lows near 1.5525 is a good place to eye though you can also target inflection points like 1.5470 or 1.5300 if there’s enough selling momentum.
Not convinced that GBP will see more losses against CAD? You can also wait for a clear break above the channel and moving average resistance and target previous target areas of interest near 1.6150 or 1.6325.
I spy with my eye a potential reversal in the making!
NZD/JPY got rejected from the 86.50 levels not once, but TWICE so far this month.The pair is now sporting a Double Top pattern on the 4-hour time frame with its “neckline” near the 83.00 psychological level.
Shorter-term traders can take advantage of NZD/JPY’s bearish momentum and ride a possible retest of the 83.00 zone.
Meanwhile, more conservative traders can wait for a clear break below the neckline before aiming for previous lows near 81.00 or 80.00.
If you’d rather buy NZD against JPY, then you’ll want to do it as soon as you see the 100 SMA, 200 SMA, or the Double Top neckline holding as support.
The 86.50 previous resistance would make a good target for the bulls, though you can also aim for new monthly highs if you see enough buying pressure.