November 26, 2021

Breakout and Trend Trades on NZD/JPY and EUR/CAD

 Happy Friyay, errbody!

I hope you’re in the mood for bargains today because NZD/JPY is pulling back from its highs while EUR/CAD looks set for a breakout.

Check these charts out and see if you can sneak in pips from their setups!

EUR/CAD: 4-hour

Reversal alert!

EUR/CAD is forming a possible Double Bottom pattern on the 4-hour chart after the 1.4275 zone supported the pair not once but TWICE in the last few days.

Is EUR/CAD ready for a reversal? I’m not seeing any breakout above the Double Bottom “neckline” just yet but y’all keep your trading plans ready in case we see an upside breakout or even a bullish moving average crossover.

A long trade at the first signs of reversal or bullish momentum opens EUR/CAD up to a move to 1.4475 or 1.4600 previous areas of interest.

If EUR/CAD ends up making new November lows, however, then you should also make plans for a possible dip to the 1.4000 potential inflection point.

NZD/JPY: Daily

Here’s one for the trend warriors out there!

Remember the Fib play that we identified a few days back? Well, it looks like the bears have found enough friends to drag the Kiwi closer to more attractive buy levels!

But can NZD/JPY bounce from the ascending channel and SMA levels that we’ve marked? The pair’s current candlestick patterns tell us that the bears REALLY have momentum on their side, at least for now.

Look out for a bounce from the 77.50 – 78.00 area, which means that Kiwi bulls have found support from the channel, 61.8% Fib levels, and the SMAs on the daily time frame.