Who’s up for some comdoll trading today?
If you are, then you better not miss what’s cooking on USD/CAD and NZD/JPY’s charts!
Which setup will you more likely trade?
The U.S. dollar has done a great job of recovering from its November lows, climbing from the 1.3225 zone all the way to the 1.3600 psychological handle against the Loonie.USD/CAD has dipped back down, though, and is now trading just above the 1.3400 levels.
As you can see, USD/CAD’s current prices line up with not only an ascending channel support but also the 100 SMA on the 4-hour time frame.
Can USD/CAD extend its uptrend?
The odds currently favor the bulls thanks to the 100 SMA and 1.3400 support as well as the bullish divergence on the chart.
USD bulls can buy at current levels and then take profits as soon as USD/CAD reacts to the blue trend line resistance that hasn’t been broken since mid-October.
Not feeling like buying USD against CAD? You can also wait for USD/CAD to retest its trend line resistance and bet on the longer-term downtrend to drag the pair back to the 1.3300 levels.
NZD/JPY: DailyStochastic has just left “overbought” territory but NZD bears could still take advantage of the 88.00 psychological level holding as resistance.
You can short at current levels and target the 84.00 mid-range levels or the 85.00 zone near the SMAs.
Or you can wait for an upside breakout that could propel NZD/JPY all the way to its 88.00 or 89.00 previous inflection points.
Good luck and good trading this one!