EUR/GBP has been a snoozer in the last couple of weeks trading in a tight 75 pips range, but we got a minor resistance breakout of the range that could spark some momentum. The top of the range around .8975 was broken in today’s broad Sterling sell-off, and the market pulled back for a retest. It seems to be holding, which could draw in buyers to ignite some momentum to the upside, creating one last pound opportunity to grab some pips into the weekend.
EUR/NZD has been in a channel higher, likely riding the broad euro strength all week. With no major catalysts coming up before we close out for the weekend, a retest of the top or bottom of the channels could likely provide some last minute pip opportunities in the form of short-term reversal plays. If we do see a major catalyst out of the blue before market close today, I’d watch out for a downside break as the best potential reward-to-risk opportunity given the already strong downtrend the market has been in!
We’ve also got a rising channel in NZD/JPY for you Kiwi bulls out there, which also coincides with a break of the previous swing high around the major psychological handle of 75.00. Odds are that this area is a buy zone given the trend higher and strong support already shown, which gives you a high probability short-term trade opportunity if you think the pair can move higher into the weekend!
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.
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