We’re taking our eyes off the dollar for a bit and check out these neat triangle plays on NZD/JPY and EUR/CHF. See if you can make pips off of these!
EUR/CHF has encountered short-term bearish pressure after getting rejected just below the 1.2000 mark.
What makes this pause interesting is that it’s almost at the 200 SMA that’s also near a trend line that has been serving as resistance and support for the pair. Oh, and look at stochastic chillin’ like ice cream fillin’ on the oversold territory!
A long trade around current levels is a good play if you believe that we’re looking at an ascending triangle in the making and you’re expecting a break above 1.2000.
If you’re not convinced of the euro’s strength, however, then you could also wait for EUR/CHF to drop below the 200 SMA and trade a possible trip back to the 1.1880 previous resistance.
Keep close tabs on this one, fellas!
If you’ve been around long enough you’ll know that we’ve been watching this daily time frame triangle on NZD/JPY.
Right now the pair is lollygagging just above the 77.00 mark while stochastic is about to hit oversold status. Does this mean that Kiwi bulls won’t wait for a retest of 76.00 before they make another run for the triangle resistance?
Buying at the earliest signs of bullish momentum could get you a pip or two (or a hundred) especially if you aim for the previous highs near 78.50.
If you’re not too sure about getting a momentum right now, though, then you could also wait for a retest of the 76.00 handle before you place your orders. Of course, if you’re confident that the pair would drop to 76.00, then you could also short the pair until it actually hits the major support.
Whichever bias you choose to trade, make sure you practice good risk management when you execute your trades!