We’re lookin’ at some verrrry interesting support and resistance levels today, forex brothas! Check out what I spotted on EUR/GBP and NZD/JPY’s charts.
After breaking below the rising channel that we spotted a week ago, EUR/GBP looks like it’s ready for some retracement.
The .8840 – .8870 is a good area to watch since it lines up with not only the 38.2% and 50% Fib, but also the broken channel support AND the SMAs on the 4-hour time frame.
Stochastic has yet to hit the overbought territory, though, so you might want to wait for the pair to actually hit the retracements and show bearish momentum before you play this support-turned-resistance opportunity.
If you believe that we’re lookin’ at a fakeout, though, then you could also wait for the pair to comfortably break above the previous support and aim for new 2018 highs for the pair.
Remember that resistance that we spotted a couple of days back? Well, it looks like forex bears paid attention!
NZD/JPY is now back at the 76.00 major psychological handle, which happens to line up with a descending triangle support and an area of interest from a while back.
Think the Kiwi will see a bounce today? Or will the bears finally break the major support area?
Whichever bias you choose to trade on this chart, make sure to keep your stops wide! Remember that yen crosses like these (especially on higher time frames) tend to be more volatile than the other pairs.