If you’re a short-term trader, then y’all may wanna check out the channel on NZD/CAD that I found. And while you’re at it, you may also wanna check out the Fibonacci retracement setup I have on AUD/CHF’s 1-hour chart.
NZD/CAD has been trending lower for some time now while apparently testing that there descending channel on its 1-hour chart.
And as y’all can see, the pair is currently testing the channel’s support area. If support does form, and if the pair start moving up again, then them bulls will likely be gunning for the channel’s resistance area, which should be somewhere between 0.9170 and 0.9200.
Of course, there’s also a small chance that the pair may stage an upside breakout. Y’all may therefore wanna prepare a contingency plan just in case the pair clears 0.9250
Also, do note that going long at the channel’s support area is a counter-trend play, which makes the setup extra risky. So only start lookin’ for opportunities to go long if you think you’re gangsta enough.
At any rate, just make sure y’all remember to practice proper risk management as always, a’ight?
AUD/CHF’s recent uptrend stalled and then began pulling back. And if we also apply our handy Fibonacci tool, we can see that the pair appears to be respecting the 61.8% retracement level, which is just above the area of interest at 0.7420.
We’re still mainly bullish on the pair, though. And all the more so, given that the pair appears to be respecting that there rising trend line.
Today’s play is therefore to wait for the pair to signal that bulls are in control by moving higher past the 0.7450 minor psychological control.
The bullish picture ain’t perfect, though, since the moving averages just recently crossed-over into downtrend mode. And that means that there’s also a risk that the setup may fail, so y’all just be ready to bail yo longs if the pair moves lower past 0.7390.