Home Tools Chart Art: Resistance-Turned-Support Levels on EUR/CAD and AUD/NZD

Chart Art: Resistance-Turned-Support Levels on EUR/CAD and AUD/NZD


Check out these neat break and retest plays!

Will the areas of interest on EUR/CAD and AUD/NZD attract more buyers?

EUR/CAD 4-hour Forex Chart

EUR/CAD 4-hour Forex Chart

First up is this long-term trend reversal that’s brewing on EUR/CAD.

The pair was able to bust through the falling trend line resistance in its 4-hour time frame but has hit a roadblock on its climb around the 1.3245 level.

Is the downtrend resuming or are buyers just waiting to hop in at better prices?

It all boils down to whether or not the broken trend line holds as support this time!

The Fibonacci retracement tool shows that the former resistance zone coincides with the 50% level and the dynamic inflection points at the moving averages.

However, the 100 SMA is still below the 200 SMA while Stochastic is heading south, indicating that bearish pressure is very much in play.

Better wait for the oscillator to reflect exhaustion among sellers or the moving averages to make a bullish crossover if you’re going long!

AUD/NZD 4-hour Forex Chart

AUD/NZD 4-hour Forex Chart

Next we’ve got this neat range breakout on the 4-hour chart of AUD/NZD. If you’ve missed this move, you might still have a chance to catch the retest.

Which levels are buyers keeping on their radar?

The handy-dandy Fib tool shows that the 38.2% to 50% levels span the area of interest around the former resistance at 1.1150. This is also around the 100 SMA dynamic support, which adds to its strength as a floor.

If any of the Fibs keep losses in check, AUD/NZD could resume its climb to the swing high at the 1.1250 minor psychological level and beyond.

Technical indicators are suggesting that the odds are in favor of a bounce. The 100 SMA is above the 200 SMA to reflect upside momentum while Stochastic is in the oversold area to signal exhaustion among sellers.

Don’t forget to practice proper risk management when trading these setups!

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