Welcome to mid-week trading, forex friends!
Get ’em while they’re hot!
Holler if you’re shorting the dollar!USD/CAD has been making lower highs and lower lows after hitting a resistance at 1.4000 and now the pair is trading closer to 1.3600.
Aside from being a major psychological handle, 1.3600 also lines up with the top of a descending channel on the 4-hour time frame.
And all that while USD/CAD is sporting a bearish divergence!
Shorting at current levels would yield a good risk ratio especially if USD drops back down to the 1.3300 mid-channel zone or even its November lows.
If USD/CAD extends its upswing, though, then you should also be ready for an upside breakout that could take USD/CAD back to the 1.3800 and 1.4000 previous inflection points!
What’s chillin’ and could make you a killin’? If you guessed GBP/NZD’s 4-hour chart then you’ve seen the setup above!GBP/NZD is only a few pips away from 1.9200, which marks the bottom of a 250-pip range that’s been holding all month.
Are we looking at another chance to trade the range?
Stochastic hasn’t quite reached its “oversold” levels but it probably won’t take a lot of momentum before GBP bulls take advantage of a support play.
Look out for the first green candlesticks that could boost GBP/NZD to its 1.9300 mid-range or 1.9450 range resistance areas!
If not enough bulls show up, then maybe GBP/NZD is ready to break to the downside.
Don’t discount a possible dip to the 1.9100 or the 1.8930 previous inflection points!