First up is a nice and simple trend play for scrilla traders out there. EUR/USD is consolidating around the 1.0650 area, which is right above the rising channel AND 100 SMA support on the daily time frame. Oh, and look at stochastic chillin’ like a villain on the oversold territory!
Buying at current levels could get you serious pips if you think that the euro’s uptrend will take EUR/USD back to the 1.0800 or even the 1.0900 areas.
But if you’re not too sure about the euro’s strength or if you think it could go lower before bouncing, then you could also wait for some momentum or for stochastic to actually leave the oversold area before placing your trades.
In any case, make sure you place wide stops when trading long-term time frames like these!
Remember that Fib opportunity that we spotted earlier this week? Well, it looks like it’s game time for NZD/JPY!
The pair has finally hit the 77.00 levels, which, as we noticed a few days ago, lines up with the 200 SMA, 61.8% Fib retracement, and serious area of interest on the daily time frame. This time around a bullish divergence has also popped up on the chart.
Will Kiwi finally take a breather against the yen? Or will the yen bulls hustle some more muscle and push for a move down to the 72.50 – 73.00 lows? Watch this one closely, homies!