Whattup, homies! I’m servin’ up trend and countertrend plays on NZD/CAD and GBP/JPY today. Think you can get pips from these forex charts?
First up is a nice and simple retracement on Guppy’s daily time frame. As you can see, the pair is fast approaching the 148.50 – 149.00 area, which lines up with a channel support that the pair had broken a couple of days back.
What makes the setup more interesting is that the 100 SMA is about to cross below the 200 SMA right around the time when stochastic is also about to hit overbought status.
Are we looking at a break-and-retest situation? Shorting at the first signs of bearish momentum around the retest could get you pips especially if you think that the pound will make new lows against the yen this year.
If you think that last month’s “breakout” is actually a fakeout, though, then you could also wait until the pound is safely back above the channel support before you trade an uptrend.
Watch this one closely, brothas!
Here’s one for countertrend traders out there! NZD/CAD is having trouble breaking above the .9100 major psychological handle, which is right smack at a mid-channel resistance on the daily time frame.
With stochastic chillin’ like a villain in the overbought region, you can bet your pips (with proper risk management, of course) that other bears are watching this one too.
Shorting at current levels could get you a pip or two (or 300) if you aim for the previous lows near .8800. Of course, you could also wait for a bit of momentum if you’re not sold on the pair’s downtrend just yet.