Sup? Last time we had a look at NZD/CAD wuz on January 4, which is a really long time ago. And back then, we wuz lookin’ to go long when the pair wuz at 0.9240, since we wuz expecting the bulls to push the pair higher. And as y’all can see, 0.9240 held as support. Not only that, by respecting 0.9240 and then staging an upside breakout, the pair even formed a double chart pattern. The pair then broke past the double bottom’s neckline at 0.9400 and surged it found fresh sellers at 0.9600.
For today’s play, we’re still bullish on the pair. However, we’re expecting a pullback in the short-term, given that 0.9600 is an area with significant market interest, even on the higher time frames and the pair seems hesitant to move higher for now. Moreover, stochastic is already indicating overbought conditions and all that. If there be a pullback, then the bears would likely be gunning for the next area of interest at 0.9490. Although there’s also a chance that the pair may go as low as the broken resistance/neckline at 0.9400.
The rectangle on NZD/JPY’s 1-hour chart that we’ve been playin’ since January 16 finally got invalidate when the pair broke to the upside. However, the pair got violently rejected when it reached the 82.80 handle. The rejection wuz so strong that the pair retreated all the way back to the broken resistance area at 81.80. In the process, we got us a classic break-and-retest setup to play with. And if we use our Fibonacci tool, we can see that the pair went all the way to the 61.8% retracement level before getting bid up again.
Presently, the pair is making its way higher again. And bulls are likely gunning for 82.80. Although a strong break past that means that bulls will be shooting for 83.50 next. Anyhow, just yo back be ready to bail if the pair drops back down below 81.80 on strong momentum, since that means that bears are likely taking over while gunning for 80.80. In any case, just make sure to practice proper risk management, a’ight?
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