It’s all about the Kiwi on today’s canvas, as we tinker around with short-term forex trade opportunities on NZD/JPY and EUR/NZD. What do you think of these charts?
Remember that uptrend play that trend play that we spotted a couple of days back? Well, that would’ve worked out REALLY well if you had taken the plunge, brotha! If you want to get in on the uptrend, then now is the perfect time for you.
NZD/JPY is about to hit the 80.25 levels, which is not only near the rising trend line support, but is also around the 61.8% Fib AND 200 SMA support on the 1-hour time frame.
With stochastic just hitting oversold status, you can bet your momma’s cat that bulls and bears are already watching this one. Watch out for the 80.00 MaPs, though, as bears could still aim for the level before we see any decent bounce.
If you’re not into buying Kiwi, though, then you could also wait for a break below the trend line that has been holding since early December and trade a downside breakout instead. Just make sure you use wide stops whichever bias you choose to trade, aight?
After finding support near 1.6600, EUR/NZD has found upward momentum and has jumped by about 100 pips. Will the uptrend have enough juice to rise to the 1.6800 area of interest?
As you can see, 1.6800 lines up with a 50% Fib, the 100 and 200 SMAs, AND a previous support area for the pair. Stochastic has already hit overbought territory, though, so it might take another catalyst to boost the pair by another 100 pips.
Shorting around 1.6800 could get you mondo pips especially if it drops back to make new lows. If you’re not confident that EUR/NZD will hit that level before turning back down, then you can also scale in at current levels. Read up on the trading strategy if you haven’t done that before, will ya?