We’re taking on swing trade opportunities on the currency crosses today, folks! Check out GBP/NZD’s trend and CHF/JPY’s range plays and see if you can make pips from them this week!
Remember that longer-term range resistance that we talked about a few days back? Well, the it looks like the bulls had more mojo than we thought!
GBP/NZD is now trading around the .9700 major psychological area, which is above the 100 SMA, a rising trend line retest, and the 50% Fibonacci retracement on the 4-hour chart.
Are we looking at the start of a longer-term uptrend for the pound? Buying at current levels is still a good trade idea especially if you expect GBP/NZD to trade above its September highs in the next few days.
Not confident about buying the pound? You can also wait for the pair to break below the trend line that I’ve marked and trade a potential move towards the longer-term range instead.
Whichever bias you choose to trade, don’t forget that currency crosses like this tend to see higher volatility than the major dollar pairs. That means you should keep your stops loose enough if you don’t want to lose your shirt!
Here’s one for the range traders out there!
CHF/JPY is chillin’ like a villain just above 108.25, which marks a range support that hasn’t been broken since early September.
What makes the setup interesting today is that stochastic is flashing an oversold signal on the 4-hour time frame.
Buying at the earliest signs of bullish momentum would give yo a good reward-to-risk ratio especially if you place your tops just below the support and CHF/JPY pops up to its 109.00 range resistance.
If you’d rather short the franc, then you could also wait for a break of the range support and then aim for a possible retest of the 107.00 – 108.00 previous areas of interest.