Chart Art: Comdoll Special With AUD/USD and NZD/CAD’s Setups

National Financial Solution > Forex Trading > Chart Art: Comdoll Special With AUD/USD and NZD/CAD’s Setups

Comdoll traders huddle up!

Today we’re looking at AUD/USD’s channel resistance and a possible reversal on NZD/CAD‘s 1-hour time frame.

Get ’em while they’re hot!

AUD/USD: 1-hour

AUD/USD 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

AUD/USD is consolidating around the .7750 area of interest, which just became more interesting today because the level is in line with a trend line resistance that the bears have been defending since mid-May.

Let’s see if AUD/USD can extend its downtrend. Aside from the trend line, bears might want to note that the pair is sporting a bearish divergence AND is hanging around the 100 and 200 SMA on the 1-hour chart.

Shorting at current levels or the first signs of selling is your best bet if you’re bearish on the Aussie. The .7710 lows would make for a good initial target, but you can also aim for the .7685 previous support if you think that the Aussie will lose more pips on the dollar this week.

NZD/CAD: 1-hour

NZD/CAD 1-hour Forex Chart
NZD/CAD 1-hour Forex Chart

Breakout alert! NZD/CAD just broke above a trend line resistance that hasn’t been broken since late April!

Are we looking at a reversal in the making? Keep in mind that NZD/CAD is still trading below the 200 SMA and could still extend its downtrend in the next couple of days.

If NZD/CAD drops back below the trend line, then you can probably aim for May’s lows near .8650 and then take partial profits until the downswing runs out of steam.

If you see NZD/CAD trading above the 200 SMA, though, then you gotta be ready for a potential upswing. The .8745, .8780, and .8850 zones would make for good profit targets depending on your holding time and NZD/CAD’s average volatility.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *