Who’s up for trading the dollar today? I hope you are, because these hot setups on EUR/USD and NZD/USD are too good to miss!
EUR/USD is having trouble breaking below the 1.1400 major psychological handle that’s also near the mid-channel AND 200 SMA support on the 4-hour time frame.
The cherry on top of this sweet setup is a mini bullish divergence on the chart.
Think the euro will extend its gains against the dollar? A long trade at current levels could still give you a good reward-to-risk ratio especially if EUR/USD pops back up to its 1.1550 previous highs.
If you’re not sold on the euro’s strength yet, however, then you could also wait for a retest of the channel support closer to 1.1350 before you make any decision.
Watch this one closely in case trend-traders dominate on this pair!
NZD/USD’s .6850 handle is still holding strong as resistance, which isn’t surprising since the level has served as support and resistance in the past. What’s more, the pair is currently lining up with the 200 SMA on the daily chart!
If the pair turns lower, then we could be seeing a shorter-term downtrend that could drag the Kiwi closer to the .6850 support near the 100 SMA.
If the pair shoots above the .6850 resistance, however, then we could see a move to the .6950 – .7000 areas of interest.
What do you think? Is Kiwi about to start a downtrend against the dollar? Or will the bulls come through and push for an upside breakout?