Who’s up for trading currency crosses? I hope you are, because I’ve got hot setups lined up from EUR/GBP and NZD/JPY! Check it out, yo!
After breaking below an ascending channel that had been solid since the start of June, EUR/GBP found support at the .8750 area.
The pair has bounced by around 50 pips since then, and is now trading around the .8800 major psychological handle. What makes the level more interesting is that it’s right around a 50% Fib retracement and the broken support on the 1-hour time frame.
Oh, check out the 100 SMA crossing just below the 200 SMA! With stochastic hitting the overbought territory, you can bet your pips (with proper risk management, of course) that the bears will be watching.
Will the euro go back down to make new monthly lows against the pound? Or will euro bulls find enough muscle in their hustle to push the pair back to its uptrend?
Looks like the bears won the tug-o-pips around the 83.25 major resistance area! As you can see on the chart, NZD/JPY has just bounced from the level that hasn’t been broken since June 2016. Now that’s commitment!
The 80.50 is the next area of interest to watch although the 79.00 MaPs near the SMA crossover and 77.50 trend line support are also good levels to keep a close eye on.
Right now it looks like the odds are in the bears’ favor with stochastic just leaving the overbought region. Shorting at current levels could still get you a good R:R especially if you aim for the support levels that we identified.
Of course, you could also wait for an upside breakout if you think that the Kiwi is actually gunning for a triangle breakout in the next couple of days. Either way, make sure you use wide stops when trading currency crosses like this, aight?