Loonie bears are doing a good job of defending the trend line resistance that the bulls have been knocking on since the start of the month.
Of course, it doesn’t hurt that the trend line is also around the 100 and 200 SMAs AND the 86.50 minor psychological handle this week.
Sellers can jump on the downtrend at current levels, target this week’s low, and place their stops just above the 200 SMA for a good risk ratio.
If you’d rather buy the comdoll against the yen, however, then you’ll want to do it once CAD/JPY successfully breaks above the trend line and maybe pushes the 100 SMA to cross above the 200 SMA.
AUD/NZD is finding support at the 1.0750 minor psychological level that’s right smack at a 61.8% Fib retracement, and channel support on the daily time frame.
Bulls who believe that the Aussie can extend its uptrend against the Kiwi can buy at the first signs of bullish momentum and target 2021’s highs.
If you see the Aussie trading below the channel and SMA support levels, though, then you gotta be ready for possible trips to the 1.0650 or 1.0570 previous areas of interest.
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