I’m mixing things up this week with a new set of currency crosses on my watch list! Check out these plays on AUD/CAD, NZD/CAD, and NZD/CHF!
This pair is trending higher on its 4-hour time frame, moving above an ascending trend line connecting the lows since the start of the year. Price is in correction mode, though, and Aussie bulls must be waiting right around the Fib levels.
In particular, the 61.8% Fib retracement level is closest to the trend line support and just above the 1.0000 major psychological mark. This also coincides with a former resistance zone around parity.
Stochastic is already dipping into oversold territory to indicate that sellers are starting to get exhausted, and turning higher could mean that buyers are returning. If any of the correction levels hold as support, AUD/CAD could make its way back up to the swing high.
Here’s another neat correction play, this time on the short-term time frame of NZD/CAD. Price also looks prime for a classic break-and-retest opportunity at the rising channel support near the .9400 handle.
This is around the 50% Fibonacci retracement level and a former resistance level that might be enough to keep losses in check. Stochastic is already on its way up to show that bullish pressure is returning, so the 38.2% Fib might actually be enough to hold as a floor and push price back up to the top of the channel.
Last but certainly not least is this other Kiwi play on a longer-term chart. I’ve had my eye on this descending triangle pattern for quite some time and I’m waiting for another bounce off the resistance.
It looks like sellers might be ready to jump back in, though, as stochastic is already turning south from the overbought region. This might lead to another test of the triangle bottom around the .6750 minor psychological mark or perhaps a break lower.
I’m watching this one closely because the RBNZ decision is coming up this week, likely spurring additional volatility for the Kiwi.
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