I’ve got my eye on a couple of Loonie pullback plays plus one triangle setup on NZD/JPY this week. Take a look!
Here’s an update on the CAD/CHF double bottom from the previous week! Price broke past the formation’s neckline to show that an uptrend is underway, but a pullback seems imminent.
Stochastic is on its way down to confirm that bears have the upper hand for now, but the oscillator is approaching the oversold region to signal potential exhaustion.
Applying the handy-dandy Fib tool on the swing low and high shows that the 50% to 61.8% levels line up with the area of interest that might be enough to keep losses in check.
If you’re bearish on the Loonie, you might like this pullback scenario better. EUR/CAD has been trending higher for more than a year already, and another correction seems possible.
The ascending trend line connecting the lows on the daily time frame lines up with the 61.8% Fibonacci retracement level just above the 1.5300 handle. To make this deal sweeter, it coincides with a former resistance area, too!
Stochastic looks ready to climb out of the oversold region already, which suggests that euro bulls could take over soon. I’m gonna be watchin’ out for potential catalysts during the release of the ECB minutes later this week.
Last but not least is this long-term descending triangle play on NZD/JPY. The pair seems to be gaining traction on its bounce off support as a teeny tiny double bottom can also be seen.
A break past the neckline around the 78.00 to 78.50 levels could send this pair up to the top near the 80.00 major psychological mark. Stochastic is still heading north so price could follow suit, but the oscillator is dipping in overbought territory.
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