Each USD/CAD and GBP/NZD have pulled again from their established downtrends.
Are we retracements or the beginning of longer-term reversals?
Take a look at these charts and lemme know what you suppose!
GBP/NZD has been on a downtrend since early October but it surely seems to be just like the bears are battling their momentum these days.
Certain the pound remains to be buying and selling beneath a descending pattern line and the 100 SMA on the 4-hour timeframe however a attainable Reverse Head and Shoulders sample tells us that the promoting could also be operating out of steam.
Look out for a break above the 100 SMA and the pattern line we’ve marked because it may result in a take a look at of the 1.9250 earlier resistance and even the 200 SMA.
When you see the pound get rejected on the 100 SMA, although, then you’ll be able to most likely commerce with the general pattern and worth in a dip again to November’s lows.
Are you seeing what I’m seeing? USD/CAD simply noticed a moving average crossover on the day by day!
Does this imply that USD/CAD is prepared for a reversal? The pair is buying and selling inside what seems to be like an ascending channel after discovering assist from the 1.2050 zone earlier this yr.
After all, we is also seeing a bearish flag pattern that may prolong USD/CAD’s longer-term downtrend.
Greenback bulls can make the most of the present momentum and worth in a soar to the 1.2850 earlier highs and even new 2021 highs for the pair.
When you suppose that we’re simply seeing a pullback, nonetheless, then it’s also possible to design buying and selling plans round a draw back breakout that may retest 2021’s lows.
Whichever bias you find yourself buying and selling, make certain to make use of your finest risk management strikes so you’ll be able to reduce your dangers and maximize your losses!