I’m mixing it up a bit in this week’s final intraday charts update, with a broken trend line play on CAD/CHF and a Fibonacci retracement setup on AUD/NZD.
As y’all can see, CAD/CHF recently broke that there rising trend line. And while bearish momentum hasn’t ramped up just yet, the pair has been closing below the broken trend line, which implies that bearish interest is strong.
If or when the bulls finally give up, then the pair will still need to clear 0.7510 and then 0.7470 before the new downtrend is confirmed. And by that time, them moving averages will already be in downtrend mode as well.
However, the bulls ain’t out of the fight just yet until then, so just be ready to bail yo shorts if the pair clears 0.7590 and goes back above the trend line since that would be a clear sign that bulls are bustin’ caps.
AUD/NZD surged higher only to get slapped lower after finding resistance at 1.0830.
After pulling back, however, the pair appears to be hesitating at the area of interest at 1.0630. And if we apply our handy Fibonacci tool, we can see that 1.0630 lines up with the 50% retracement level.
As such, chances are good that support may form here. And looking at our technical indicators, we can also see that them moving averages are still in uptrend mode and the 200 SMA even appears to be acting as dynamic support. Moreover, stochastic is signaling oversold conditions and all that.
Do note, though, that the pair could still potentially go lower to 1.0570. However, if the pair dips beyond that, then it’s a clear sign that bears are in control and that it’s game over for bulls.
Anyhow, just make sure to practice proper risk management, a’ight? Peace! See y’all next week!