We’re looking at not one, but TWO comdoll trades today!
Can you guess which pair has broken a short-term trend and which one is looking to extend a trend?
Check out USD/CAD and NZD/USD’s charts to find out:
USD/CAD has popped up to the 1.2600 handle after dropping below 1.2550 yesterday.
Problem is, 1.2600 is riiight about where the 100 SMA is on the 1-hour time frame.
Not only that, but the 1.2600 psychological handle also lines up with the 38.2% Fibonacci retracement of June’s major downswing.
Will bears pounce at current levels? Shorting at the first signs of bearish momentum would make for a good trade in case USD/CAD drops to new monthly lows in the next trading sessions.
If you’d rather buy USD against CAD, then you’ll want to do it once USD/CAD clears the 200 SMA AND the 1.2670 previous highs on the chart.
Breakout alert! NZD/USD is now trading below a trend line support that had held since mid-May.
What makes the breakout more interesting today is that it’s accompanied by the 100 SMA crossing below the 200 SMA on the 1-hour chart.
Are we looking at a trend change in the making? Or is this just a fakeout?
It looks like .6460 – a level that held as support in early June – is now keeping the bears at bay.
Consistent trading below .6460 could drag NZD/USD to previous inflection points like .6415 or .6370.
If NZD/USD pops back up to the broken trend line, however, then NZD bulls will have a chance to keep the uptrend going.
Watch this one closely!