It’s all about the Kiwi on today’s canvas, as we play around with forex trade opportunities on NZD/JPY and GBP/NZD. Get ’em while they’re hot!
After falling by more than 500 pips, NZD/JPY is chillin’ like a villain around the 68.25 – 69.00 area. Does that mean that the bears are done feasting?
Not if this potential bearish pennant has anything to say about it! As the School of Pipsology tells us, pennants usually lead to continuation of the strong move that preceded it.
Before you sell the Kiwi like there’s no tomorrow, though, take note that pennants are still triangles, which could lead to a breakout in EITHER direction.
That means y’all gotta be careful in case the bulls step in and decide to recover a chunk of NZD/JPY’s losses instead!
Remember that range support play that we spotted a while back? Well, GBP/NZD is now fast approaching the mid-range level!
What makes it more interesting is that the area is also near 1.9000 major psychological handle AND is right below the 100 and 200 SMAs on the daily time frame.Stochastic hasn’t quite reached overbought status, though, and I don’t see any bearish momentum just yet, so y’all could still have time to whip up trading plans if you think that GBP/NZD bears will successfully defend the 1.9000 resistance.
Not sure about shorting the pound? That’s fine, you can also wait until the pair breaks above the SMAs and maybe aim for a retest of the 1.9600 mark if you’d rather buy GBP/NZD.
Whichever bias you’re trading this week, make sure you practice your best risk management moves when you execute them trades!