Welcome to the last trading day of the week, brothas! End the week strong with these support and resistance levels on EUR/USD and NZD/USD. Check ’em out!
After hitting the 1.2000 mark a couple of weeks ago, EUR/USD has lost momentum and had fallen by about 300 pips. Question is, will forex bears have enough momentum to drag it back down to the 1.1450 mark?
As you can see, the minor psychological handle is right smack at a 38.2% Fib retracement which also happens to line up with a major resistance level in 2016. Not only that, but stochastic is now chillin’ like a villain on the oversold territory.
1.1450 is a few hundred pips away yet, so y’all still have time to make your trading plans if you’re planning on trading a Fib bounce. If you’re one of them euro bulls, though, then you could also short at market and trade the bearish momentum until you see the first signs of a bounce.
Whichever direction you favor, make sure you make good risk management decisions when you execute your trades!
Here’s one for my comdoll-trading homies out there! NZD/USD is lollygagging at the .7100 major psychological handle, which is right around a falling channel resistance that Kiwi bulls have broken and made a support area of.
With stochastic hanging around the oversold area, you can bet your pips (with proper risk management, of course) that other bulls are already watching this one.
Buying at current levels could give you a good reward-to-risk ratio especially if you aim for the previous highs around .7300 or even .7500. If you think Kiwi will continue to see bearish pressure, though, then you could also wait for the pair to break the support and aim for the areas of interest near .7050.