I hope you’re in the mood to trade swing and long-term trades, because I’ve got forex setups on NZD/USD and GBP/JPY that you wouldn’t want to miss!
Breakout alert! NZD/USD has broken above the descending channel that held the pair for most of January. Question is, will it get enough momentum to make new highs? Or will it revisit the broken channel resistance before shooting up?
Stochastic is currently in overbought territory, so there might be more bears than bulls looking at this one. A break above the current consolidation could take Kiwi all the way to its previous areas of interest near .7450 and .7500.
On the other hand, a downside break from the consolidation could drag the pair to .7350 before it sees fresh bullish momentum.
Keep close tabs on this one, will ya?
Trend traders huddle up! GBP/JPY is having trouble breaking below the 148.00 major psychological handle, which isn’t surprising since it lines up with a rising channel support AND a previous area of interest for the pair. What’s more, it’s also near the 100 and 200 SMAs on the daily time frame!
Stochastic is flashing an oversold signal, so y’all might want to look for long trades rather than shorts. Right now buying at the earliest signs of bullishness could get you a good reward-to-risk ratio especially if you aim for the previous highs near 157.00.
But if you’re not into the pound and you believe that the yen bulls aren’t done buying, then you could also wait for a convincing break below the 148.00 support and trade a downside breakout instead.
Whichever bias you choose to trade, make sure you keep your risk management practices tight, aight?