Comdoll and currency cross traders huddle up! I’ve spotted possible trend reversals on NZD/USD and GBP/JPY’s daily time frames that you’ll want to see. Check it out!
GBP/JPY broke below a trend line in mid-August, but has found support at the 139.50 psychological area before seeing a bounce. Right now the pair is encountering resistance around 142.50, which isn’t surprising since it lines up with the broken trend line, 38.2% Fib retracement, AND the 200 SMA on the daily time frame.
Stochastic has yet to hit overbought levels so pound bulls could still have legs on them before the bears take over. Keep your eyes peeled for the earliest signs of a downside momentum, as it could take the pair back to 139.50 if not the previous lows.
But if the pair breaks above said resistance levels, then the 100 and 200 SMAs could actually work in the bulls’ favor. In that case, watch out for a trip back to its 147.50 previous highs. Good luck and good trading, brothas!
Here’s one for comdoll traders out there! NZD/USD is lollygagging at the .7200 psychological handle, which is right at the channel resistance that the pair had broken above of in late May.
Are we looking at a resistance-turned-support situation here? The 50% Fib, 100 and 200 SMAs AND the bullish divergence on the 1-hour time frame could get more bulls to push it up to its .7500 highs.
But if it’s a head-and-shoulders-ish breakout like we identified a couple of days back, then the pair could go back inside the falling channel and extend its downtrend. Whichever bias you decide to trade, make sure y’all have your trading plans locked in before you place your orders!