It’s all about the Kiwi on today’s canvas, as we explore options on NZD/JPY’s uptrend and NZD/USD’s downtrend. Check it out, yo!
Short-term traders huddle up! NZD/JPY is having trouble breaking below the 82.75 area, which isn’t surprising since it lines up with the 38.2% Fib retracement and a mid-channel support.
If you look closely, you can see that the level is also near the 100 SMA on the 1-hour time frame. Oh, and check out that sweet oversold stochastic signal!
Buying at current levels could still get you decent pips especially if you think that the pair would make new highs this week. But if you’re no fan of the Kiwi, then you could also wait for a break below this rising channel and trade a breakout play instead.
Breakout or fakeout? NZD/USD looks like it has juuust broken above a rough falling channel on the daily time frame.But since the pair hasn’t made new highs since June, I’m guessin’ the bears are still putting enough muscle on their hustle.
Stochastic has already left the overbought territory, but that doesn’t mean that there won’t be selling pressure especially if this baby drops back down to the channel.
The .7000 – .7100 major psychological area is a good level for initial targets since it’s near the mid-channel support on the daily time frame. Just make sure you place wide stops on long-term setups like these, aight?