Where my comdoll-trading brothas at?
Today we’re looking at not one, but TWO comdoll charts that could gain you pips in the next couple of days.
Check out AUD/USD and NZD/CAD’s setups!
AUD/USD: 4-hour
Two weeks ago, Aussie bears pressed the pedal to the metal and dragged AUD/USD down to the .7100 zone.
The bulls have gotten some of their pips back, though, and now AUD/USD is trading just under the .7300 handle. Problem is, .7300 is not only near the 200 SMA but also the descending channel resistance that’s been around since late June.
Is AUD/USD due for another downswing? Aussie bears can sell at current levels and aim for the .7200 channel support or even August’s lows for a decent risk ratio.
Meanwhile, market bulls who see AUD/USD extending its upswing and finally breaking above the 200 SMA can wait for an actual breakout before aiming for previous highs like .7400 or .7500.
NZD/CAD: 4-hour
If you’re not feeling the U.S. dollar these days, then you can check out NZD/CAD’s 4-hour time frame.
As you can see, the pair is poppin’ up wicks around the .8850 handle that had held as resistance at least twice since mid-July.
Now that Stochastic is giving us “overbought” vibes, you can bet that at least some Kiwi bears are making trading plans for a short trade.
Shorting at the first signs of bearish momentum is a good idea if you think that NZD/CAD will dip back down to the .8780 mid-range or .8700 range support areas.
If you’d rather buy the Kiwi against the Loonie, though, then you’ll want to do it after NZD/CAD trades and stays above the .8850 resistance. The .8950 zone is a good initial target but you can also aim for .9000 – .9050 if you see enough momentum.
