Whattup, forex brothas! I’m serving up a neat break-and-retest situation on EUR/NZD and a nice downtrend play on USD/CHF. Get ’em while they’re hot!
As you can see, EUR/NZD dropped below the 1.6700 mark after breaking below a rising trend line on the 4-hour chart.
What makes the chart interesting today is that it’s trading just below the 1.6950 mark, which lines up with a 50% Fib retracement AND the trend line that the pair had broken earlier this month.
With stochastic chillin’ like ice cream fillin’ in the overbought territory, you can bet your pips that other bears are watching this one too. Are we looking at a break-and-retest scenario over here?
Shorting at the earliest signs of bearish momentum is a good idea if you think that the euro will extend its weakness against the Kiwi. If you’re one of them euro fans, though, then you could also wait for the pair to trade back above the trend line and even break the 1.7100 previous triangle resistance before you jump in.
Here’s one for the trend warriors out there! USD/CHF is about to hit the .9650 area, which lines up with a falling channel resistance on the daily time frame.
If the channel holds, then we might find the pair trade back down to the .9530 or .9450 previous support levels. On the other hand, a break above the channel could push the pair to the .9850 previous area of interest.
Which way do you think the Greenback will go? Watch this one closely, fellas!