It looks like the short-term trends are about to end for USD/CAD and NZD/JPY!
Check out these reversal patterns I’m seeing on their hourly charts.
USD/CAD: 1-hour
USD/CAD 1-hour Forex Chart
This pair might be exhausted from its climb, as it failed in the last couple of attempts to break above the 1.3800 barrier.
Price is now inching close to testing the double top neckline around the 1.3600 major psychological mark, and a break lower could confirm a reversal.
Don’t miss out on this one because it could mean a 200-pip drop for USD/CAD!
The 100 SMA is above the 200 SMA for now, which means that there is still some bullish pressure going around. However, the gap between the indicators is narrowing to hint at a bearish moving average crossover.Besides, USD/CAD is also sliding below the 200 SMA dynamic inflection point, so it could hold as resistance moving forward.
Stochastic isn’t quite feeling the bearish vibes just yet, as the oscillator is reflecting exhaustion among sellers. Turning higher might mean that bullish momentum could kick in again and take the pair back up to the tops.
NZD/JPY: 1-hour
NZD/JPY 1-hour Forex Chart
Here’s another potential reversal play on a commodity currency!
NZD/JPY made a couple of unsuccessful attempts to break below the 81.00 major psychological mark and is testing the resistance around the 83.00 handle.
A break above this double bottom neckline could set off a rally that’s the same height as the formation, which spans around 200 pips.Technical indicators are also looking mixed, with Stochastic hovering in the overbought zone and the moving averages attempting a bullish crossover.
Still, it’s worth noting that the pair is already trading above the 200 SMA as an early indication of a likely change in trend.
If the ceiling keeps holding, NZD/JPY might resume the drop and revisit the lows at 81.00. Just stay on the lookout for either reversal or breakout candlesticks when trading this one!
