Chart Art: Potential Support Plays on USD/CAD and NZD/JPY

Wakey wakey, there are pips to makey! We’re loading up on comdoll goodness today with a trend play on USD/CAD and a possible double bottom situation for NZD/JPY. Check ’em out!

USD/CAD: 1-hour

USD/CAD 1-hour Forex Chart
USD/CAD 1-hour Forex Chart

USD/CAD is having trouble trading below the 1.3300 major psychological handle, which isn’t surprising since it lines up with a previous resistance level on the 1-hour time frame.

What makes 1.3300 more interesting today is that the 100 SMA also lines up with the level. Oh, and look at stochastic chill in the oversold territory!

Buying at the first signs of bullish momentum is a good idea if you’re betting on USD/CAD making new February highs in the next trading sessions.

Think 1.3300 is a top for the pair? You might want to wait until USD/CAD trades below February 5’s low and make a case for a long-term reversal instead.

Which bias are you leaning towards this week? Feel free to share!

NZD/JPY: 4-hour

NZD/JPY 4-hour Forex Chart
NZD/JPY 4-hour Forex Chart

I like big double bottoms and I cannot lie!

NZD/JPY is finding support at the 70.00 major psychological handle, which is major (heh) enough even if it also doesn’t hint at a potential double bottom.

Remember that double bottoms tend to see breakouts that are as strong as the height between the bottoms and the “neckline.” We’re talking 125 pips in this case, yo!

Can Kiwi bulls defend 70.00 for another day? You can buy at current levels and trade a basic support play at 70.00 if you’re not sure of the double bottom pattern just yet.

  Daily Market Outlook, May 19, 2020 

If you’re one of them bears, however, then you can also wait for a clear break below 70.00 and aim for a retest of the 69.00 handle instead.

Whichever bias you choose to trade, make sure to mind your risk management decisions like your next meal depends on it!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line

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