I hope you’re in the mood to trade the New Zealand dollar today, because I got hot ones on NZD/USD and NZD/JPY just for you. Check it!
Trend traders huddle up! NZD/USD’s rising channel – one that’s been valid since mid-May – is currently providing a neat opportunity to jump in on the Kiwi’s uptrend.
As you can see on the chart, the pair is just above the .7200 handle, which is right around the rising channel support as well as the 100 and 200 SMAs on the chart. What’s more, stochastic is popping up an oversold signal!
You could go long at current levels if you’re confident that NZD/USD will go on its merry way up to retest June’s highs in the next couple of trading sessions. But if you’re not too sure that the uptrend’s strength, then you could also wait for a bit of a bounce from current levels or signs that the pair would break lower after all.
Whichever direction you trade, make sure you practice good risk management when you do decide on a bias!
Here’s one for longer-term traders out there! NZD/JPY is currently having trouble breaking above the 81.00 after seeing a strong uptrend in the last couple of days.
And why not? If you squeeze your daily charts a bit, you can see that the level is a major area of interest from way back in mid-2015. Question is, will bears take a bite this time?
Stochastic is flashing an overbought signal, so the bears have more meat to chew on. However, we can’t be sure that the uptrend has lost its steam just yet.
The bulls might put more hustle in their muscle to push NZD/JPY to its previous highs near 83.00 – 83.50 before we see legit selling interest. Watch this one closely, brothas!