Happy Friyay, errbody!
If you’re looking for short-term plays before the week ends, I gotchu!
Take a look at AUD/USD’s trend retracement and NZD/CAD’s possible trend reversal:
AUD/USD’s downtrend hit a hurdle at .6830 last week and it looks like AUD bulls aren’t ready to give up the reins just yet!
The pair reached .7070 last week before pulling back down to the .7000 major psychological handle.
As if .7000 isn’t big enough, current prices also line up with the 50% Fibonacci retracement of the last upswing, the 100 SMA on the 1-hour time frame, and a trend line support that’s been around since the bounce from the .6830 lows.
How high can AUD/USD fly?
Technicals favor the bulls for now with Stochastic flirting with oversold levels just as green candlesticks are popping up along the 1-hour trend line support.
A long trade at current levels is a good idea if you believe that AUD/USD will extend its short-term uptrend.
If you’d rather short the comdoll against the safe-haven, then you’ll want to wait for a clear break below the trend line support before you place any orders.
NZD/CAD is consistently trading above the 1-hour chart’s 200 SMA for the first time since the 100 SMA crossed below the 200 SMA in early April!
What’s more, NZD/CAD has pulled back by about 50 pips from its .8200 highs to retest the broken 200 SMA resistance.
Are we looking at a break-and-retest play in the making?
NZD bulls and CAD bears can buy at the first signs of bullish pressure that could take NZD/CAD back to .8200 or even the .8250 and .8300 previous inflection points.
Feel like NZD/CAD’s downtrend isn’t over just yet?
You can also check out the higher time frames and use the current upswing to identify potential short entry levels.
Whichever bias you’re trading, make sure to practice good risk management like the champ currency cross trader that you are!