I’m mixing it up a bit in today’s intraday charts update, with a double pattern on NZD/JPY and a Fibonacci retracement setup on AUD/CAD.
NZD/JPY has been trending lower recently. However, the pair appears to have found support at 72.40.
And buying interest at 72.40 does appear strong since the pair tried to break lower on two different occasions and failed both times. And in the process, a double bottom pattern appears to have formed. There’s therefore a good chance that the pair may stage a reversal and climb higher.
If the pattern is validated by a move higher past 73.40, then that means that bulls will likely be gunning for the 75.00 major psychological level.
Looking at our technical indicators, however, there also seems to be a chance for further downside moves since stochastic is already signaling overbought conditions and all that. Them moving averages, meanwhile, are still in downtrend mode. And from the looks of it, the 100 SMA appears to be acting as dynamic resistance.
Y’all may therefore wanna prepare for a trend continuation scenario as well, especially if the pair smashes lower past 0.7240 on strong bearish momentum.
EUR/CAD moved sharply lower recently. However, the pair has been pulling back ever since support formed at 1.4800.
And presently, there’s a chance that the pair may resume its downtrend since the pair is currently hesitating at the area of interest at 1.4950. Not only that, them moving averages are also in downtrend mode, while stochastic is already signaling overbought conditions.
And if we apply our handy Fibonacci tool, we can see that the area of interest at 1.4950 sits right smack on the 38.2% retracement level, which is another technical argument in favor of a possible downside move.
There is risk that the pair may move higher before moving back down, though. And if that happens, then the area of interest at 1.4990 is the area to watch since it lines up rather nicely with the 50.0% retracement level.
But if the pair moves even higher and clears 1.5040, then the setup is invalidated and y’all may wanna think about bailing yo shorts, if you have ’em.
In any case, y’all just make sure to remember to practice proper risk management as always, a’ight? Peace out!