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Up and at ’em, forex folks! Starting the trading week right means stretching your trading muscles! See what you can make of these trend and breakout setups on NZD/JPY and EUR/CHF.

NZD/JPY: 1-hour

NZD/JPY 1-hour Forex Chart
NZD/JPY 1-hour Forex Chart

While we’re still waiting for the longer-term triangle to play out, let’s see if you can make pips from this nice and simple trend play on the shorter time frame.

NZD/JPY has just bounced from a mid-channel area and it looks like it’s headed fast for the 79.50 zone. What makes the level more interesting is that it lines up with the 200 SMA that hasn’t been broken since the channel popped up.

Think Kiwi will extend its downtrend against the yen? A short trade around the channel resistance could get you decent pips especially if you aim for its previous lows near 78.00.

Meanwhile, countertrend traders can get a quick pip or two (or 20) by buying at current levels and aiming for the resistance area. Be careful, though, since countertrend trading isn’t for everyone! Make sure y’all have your trading plans mapped out before you trade this one!

EUR/CHF: 4-hour

EUR/CHF 4-hour Forex Chart
EUR/CHF 4-hour Forex Chart

Breakout alert! Remember that descending triangle that we spotted a while back? Well, it looks like euro bulls are done waiting for the bears to make their move!

EUR/CHF is now trading juuuust above the 1.1400 major psychological handle, which also happens to be above the triangle pattern AND the 100 SMA on the 4-hour time frame.

Think we’re seeing a breakout or a fakeout? If the pair succeeds in breaking above last week’s highs, then y’all prepare yourselves for a trip up to the 1.1475 – 1.1500 areas of interest.

But if the bullish momentum peters out and the pair returns to the triangle, then you might want to look at shorting the pair until it hits the triangle support near 1.1300. In any case, make sure you place wide stops when trading currency crosses like these!

Forex Chart Settings:

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