It’s all about the Kiwi on today’s canvas, as we play around with forex trading setups on NZD/JPY and GBP/NZD. Get ’em while they’re hot!
GBP/NZD is lollygagging around the 1.9300 psychological handle, which isn’t surprising since it lines up with a mid-range support on the 4-hour time frame.
What makes the setup more interesting is that stochastic is now flashing an oversold signal. Think the pound will soon go back to its June and July highs?
Buying at the earliest signs of a bounce could still get you a pretty decent reward-to-risk ratio especially if you place your stops just below the mid-range support that we identified. Just make sure you place wide stops on currency cross trades like these, aight?
Here’s a simple trend play for ya! NZD/JPY is fast approaching the 77.00 major psychological handle, which is right smack at a falling channel resistance AND is near the 100 and 200 SMAs on the daily chart.
With stochastic chillin’ like a villain on the overbought region, you can bet your pips that other bears are already watching this one.
Aiming for the previous lows near 74.00 is a good idea if you’re planning on riding this downtrend. If you’re one of them Kiwi bulls, though, then you could also wait for a break above the SMAs and aim for areas of interest near 74.00 or lower.
Good luck and good trading, brothas!