Whattup, forex playas! We’re all about the Kiwi today, as we see what’s up with EUR/NZD’s range and NZD/JPY’s longer-term trend.
EUR/NZD just bounced from the 1.7320 zone that has been serving as support since late August!
All hope is not lost, though. You can still get a sweet reward-to-risk ratio if you believe that the euro will revisit its 1.7600 previous highs against the Kiwi.
Of course, you gotta watch how EUR/NZD reacts to the 1.7480 mid-range resistance first. As you can see, it’s sitting around the 100 SMA on the 4-hour time frame.
If EUR/NZD busts above the mid-range level, then you can make a play for a trip to 1.7600.
If you’d rather short the euro, however, then you can also wait for a break below the range support and trade a possible downside breakout instead.
Watch this one closely to see if you can sneak in a pip or two (or a hundred) from EUR/NZD’s ranging action!
Trend traders huddle up! NZD/JPY is lollygagging around the 69.50 psychological handle, which is right smack at a trend line resistance and the 100 SMA on the daily chart. Oh, and look at stochastic’s overbought signal!
Before you short the Kiwi like there’s no tomorrow, you should know that MarketMilk™ is warning us of a possible reversal:
Aside from SMAs and EMAs signalling bullish trends, longer-term indicators are pointing to weakening bearish trend for NZD/JPY.
Shorting at current levels and aiming for new 2019 lows is a good play if you’re betting on further weakness for for the Kiwi.
Think NZD/JPY is due for a reversal? Wait for a legit break above the trend line AND the 200 SMA to confirm a possible bullish momentum. A break-and-retest play also won’t hurt for longer-term setups like this.
Good luck and good trading, yo!