Welcome to a brand spankin’ new trading week, forex brothas! Let’s get you a running start with a resistance-turned-support play on EUR/USD and a breakout setup on NZD/CHF. Check it!
NZD/CHF is currently lollygagging at the .6800 major psychological handle, which happens to line up with a rising trend line support on the 1-hour time frame.
What makes the setup even more interesting is that stochastic is chillin’ like a villain on oversold territory. Before you place buy orders like there’s no tomorrow, though, you should know that the bears have been successfully defending the .6820 handle for a while now.
Buying at current levels could still give you a solid reward-to-risk ratio especially if you think that the pair would break above the ascending triangle pattern over the next couple of trading sessions.
If you’re not sold on the upside breakout, though, then you could also wait for a break below the trend line and the .6775 area of interest before gun for the previous lows near .6720.
Whichever bias you choose to trade, make sure you practice good risk management when you execute your trading plans!
Here’s one for the trend warriors out there! After breaking above a falling channel last week, EUR/USD has found resistance around the 1.1900 MaPs and has dropped back down to the 1.1775 area.
Thing is, its current level is right smack at the broken channel resistance zone. And with stochastic just leaving oversold territory, you can bet your pips (with proper risk management, of course) that other bulls are already watching this one.
Think we’re looking at a resistance-turned-support situation over here? Buying at current levels could get you a sweet deal especially if you aim for the previous highs above 1.1900.
If you’re one of them euro bears, though, then you could also wait for a break below the 200 SMA and a bit of bearish momentum before you trade a possible extension of a downtrend.