Who’s up for trading currency crosses? I hope you are, because these short and swing trade setups on EUR/NZD and CHF/JPY are too good to miss!
CHF/JPY is having trouble breaking below the 110.65, which isn’t surprising since it lines up with a support area from a week ago.
This time around the pair is also sporting an oversold stochastic signal. Does this mean that the franc is about to bounce against the yen?
Buying at current levels could yield you a pretty decent reward-to-risk ratio especially if you place your stops just below the range support and aim for the previous resistance near 111.75.
If you’re one of them yen bulls, though, then you could also wait for a break below the range and trade a downside breakout instead. Just make sure you keep your stops pretty loose, aight? Yen crosses like these can see volatility like nobody’s business!
It’s make or break time for EUR/NZD! As you can see, the pair is lollygagging around the 1.7100 major psychological handle, which is looking a lot like an ascending triangle resistance on the 4-hour time frame.
Since 1.7100 has been keeping the bulls in check since the start of the year, it’s likely that we’ll see explosive action if or when the pair does break out.
Take note that not all ascending triangles break to the upside, though. The reason why 1.7100 might be holding might be because there are no more buyers above the level. Make sure you’re also prepared to trade if the pair breaks below the trend line that we’ve marked!