After smashing through support around the 1.4650 minor psychological level, price got repelled at the 1.4450 minor psychological level and was forced to move back up to the support-area-turned-resistance around the 1.4650 level, giving us a textbook break-and-retest setup. And using the Fibonacci tool, we can see that price price is just above the 38.2% retracement level. Also, the moving averages are already in downtrend mode, with the 200 SMA acting as dynamic resistance. Stochastic is pointing up, however, so forex traders who are bullish on the pair may not have given up just yet.
NZD/CAD has been moving ever higher while inside an ascending channel that has been more or less respected since late September. And I keep sayin’ it, but the most conservative way to play an ascending channel is to look for support near the bottom of the channel, and currently, price is about to test the bottom of the channel, so y’all better get ready. Looking at out technical indicators, the moving averages are clearly in an uptrend, and the 200 SMA is even acting as dynamic support. Stochastic, meanwhile, is already indicating oversold conditions, so bulls may start nibbling soon enough.
This setup is a combination of the first two. How sweet is that? Anyhow, USD/CAD has been happily bouncing up and down while moving ever higher inside an ascending channel. Presently, price is making its way to the bottom of the channel for a potential test. There’s a chance that price will move back up without testing the bottom of the forex chart pattern, though, since price is currently at the 0.50% Fibonacci retracement level, which also happens to line up with the 1.3200 major psychological level, a price area of significant market interest on the higher time frames. Also, stochastic is already in oversold territory, so the bears may potentially be exhausted already. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals