Where my comdoll-trading friends at?
GBP/CAD looks ready to chill from a trend while NZD/USD is pulling back to verrry interesting levels.
Check out what’s up on their charts!
GBP/CAD has been on a steady-ish downtrend since early August when the pair got rejected at the 1.5750 area.
Is GBP done losing against CAD?The two tests of the 1.5050 area suggest that GBP/CAD may be forming a Double Bottom pattern on the 4-hour time frame.
If the pair finds resistance at the 1.5200 psychological area, though, then GBP/CAD’s consolidation might become the start of a 150-pip range.
In this case, GBP bears can take advantage of Stochastic‘s overbought signal and trade a possible move back to the 1.5050 support.
If GBP/CAD busts above the 1.5200 zone, however, then y’all gotta be ready for a Double Bottom breakout that could take GBP to the 1.5300 or 1.5400 areas of interest.
Ready for trend-trading?
NZD/USD found support from the .6000 psychological handle and now the pair looks ready to test the .6200 mid-channel zone.
How high can Kiwi fly before the sellers step in?The mid-channel area is a good level to enter NZD/USD’s downtrend.
However, the pair can also reach the 100 SMA near the 61.8% Fibonacci retracement or the top of the channel closer to .6350 before we see sustained selling.
Watch the next daily candlesticks for clues on NZD/USD’s bullish momentum!
If you start to see red candlesticks, or if NZD/USD has a hard time making new September highs, then you also gotta be ready to trade a possible downtrend extension even when price doesn’t hit the exact pullback prices that we’re watching.
Good luck and good trading this one!