I’m mixing it up a bit in today’s intraday charts update, with a channel on NZD/USD and a Fibonacci retracement setup on AUD/CAD. Get ’em while they’re fresh!
NZD/USD’s price action has been tilting to the downside lately. And if we connect the most recent peaks and troughs, we can see that the pair has been moving lower while trapped inside that there descending channel.
And presently, the pair is testing the channel’s resistance area at 0.6970. Y’all may therefore wanna start lookin’ for opportunities to go short.
And looking at our technical indicators, we can see that the moving averages are indicating a healthy downtrend. Stochastic, meanwhile, is just about to enter overbought territory, which is another technical argument in favor of a potential downside move.
So far, everything seems to point to further moves to the downside. As always, however, just keep in mind that the risk for an upside channel breakout is always there.
And if that unlikely scenario plays out, then y’all may wanna bail yo shorts if the pair validates the topside breakout by moving higher past 0.7000.
No fancy chart patterns here! As y’all can see, AUD/CAD is currently pulling back after trending lower for a while.
And since stochastic is already signaling overbought conditions and all that, and since the downtrend is still intact, today’s play is therefore to look for opportunities to go short on the pair.
And if we apply our handy Fibonacci tool, we can see that the pair is presently testing the 38.2% retracement level.
As mentioned earlier, stochastic has already reached overbought territory, so resistance will likely form. And all the more so, given that the 38.2% retracement level lines up rather nicely with the area of interest at 0.9610.
However, there’s also a chance that pair may pull back further since the 50% and 61.8% retracement levels also look like valid pullback areas since the former lines up with the area of interest at 0.9630 while the latter sits right smack on the 0.9650 minor psychological level.
At any rate, just make sure y’all remember to practice proper risk management as always, a’ight? Peace!