Wakey wakey, there are pips to tradey! Okay, that doesn’t make much sense, but these charts will! Check out NZD/USD’s potential double top and EUR/JPY’s uptrend and see if you can get pips off of them!
I spy with my cool, bedroom eyes a potential double top in the making! As you can see, NZD/USD found resistance around the .7425 area and is headed fast for the .7225 level that lines up with a potential “neckline” on the daily time frame.
What makes the setup more interesting is that the neckline lines up with an area of interest that has served as support and resistance since mid-2017.
Will the bulls defend the previous support? Or will the bears turn this into a double bottom play? Read up on trading double tops if you haven’t tried trading the pattern!
Here’s one for my trend-playing brothas out there! EUR/JPY looks like it’s finding support around the 131.20 levels, which has been serving as support and resistance for the pair since mid-2017.
This time around, the area is also right smack at an ascending channel support AND the 200 SMA on the daily chart. Oh, and check out stochastic chillin’ like a villain on oversold territory!
Buying at current levels could give you a good reward-to-risk ratio especially if you place your stops just below the channel and aim for the previous highs near 137.20.
If you’re no fan of the euro, though, then you could also wait for a break below the channel and aim for the previous support levels near 129.30 or 128.50.
Whichever direction you choose to trade, make sure you use wide stops, aight? Currency crosses like these – especially on higher time frames – can see volatility like nobody’s business!