Partner Center Find a Broker

Who’s in the mood for trend setups on the commodity currencies today?

I’m seeing areas of interest being tested right this moment!

CAD/CHF: 4-hour

CAD/CHF 4-hour Forex Chart

CAD/CHF 4-hour Forex Chart

First up, we’ve got this bearish correction going on for CAD/CHF. The pair is already hanging out at the top of its descending channel, which happens to coincide with other inflection points.

Will sellers hop in soon?

The handy-dandy Fib tool shows levels where Loonie bears are waiting. Price is testing the 50% Fibonacci retracement level that’s right around a potential support-turned-resistance zone.

A higher pullback could still reach the 61.8% Fib at .7423, which lines up with the 100 SMA dynamic resistance.

The 100 SMA is below the 200 SMA to suggest that the downtrend is more likely to resume than to reverse. Stochastic also supports this view, as the oscillator is already indicating overbought conditions.

If you’re looking to short, make sure you wait for Stochastic to turn lower to signal that sellers are taking over. It’d help to stay on the lookout for reversal candlesticks around the area of interest, too!

NZD/USD: 4-hour

NZD/USD 4-hour Forex Chart

NZD/USD 4-hour Forex Chart

Here’s one for the Kiwi bulls!

NZD/USD seems to be bouncing off its rising trend line visible on the 4-hour time frame. This support zone is right around the 50% to 61.8% Fibonacci levels, plus the 100 SMA dynamic inflection point.

Did I mention that it lines up with a former resistance area at the .6300 major psychological handle as well?

Moving averages favor a continuation of the climb, which might take the pair back up to the swing high at .6468 and beyond.

Meanwhile, Stochastic is reflecting exhaustion among sellers, giving the green light for buyers to take over. I’m also seeing a bit of a bullish divergence, as the oscillator formed lower lows while price made higher lows.

Better set those stops right if you’re going long on this one!