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It’s all about currency crosses on today’s canvas, as we play around with potential Fibonacci retracement setups on GBP/NZD and CHF/JPY‘s charts. Which do you think will yield more pips?

GBP/NZD: 4-hour

GBP/NZD 4-hour Forex Chart
GBP/NZD 4-hour Forex Chart

GBP/NZD is knockin’ on the 1.9800 – 1.9850 area, which is right at a descending trend line retest on the 4-hour time frame. What’s more, it’s also near the 200 SMA and a 38.2% Fib retracement!

Can the bears defend the trend line for another day? Shorting at the earliest signs of bearish momentum would make for a good trade especially if you place your stops just above the major Fib levels and aim for the previous lows just below 1.9500.

If you’d rather buy the pound against the Kiwi, however, then you’ll definitely want to wait for a legit break above the trend line and the 200 SMA before you execute them breakout plays.

CHF/JPY: Daily

CHF/JPY Daily Forex Chart
CHF/JPY Daily Forex Chart

Geronimoooooo! CHF/JPY is on a free fall after finding resistance at the 144.30 levels.

How long can the bearish momentum last? 111.75 is a level to watch as it lines up with not only a 50% Fib retracement but also a previous resistance area for the pair.

Think CHF/JPY will drop to 110.00 instead? It’s also possible especially since it’s closer to the SMAs and a bigger area of interest on the chart.

The pair is still a hundred pips or so from any major support level, so you can still write your trading plans if you’re planning on a retracement trade.

If MarketMilk’s trend indicator is right, we’re still looking at an overall bullish trend on CHF/JPY’s daily time frame.

Feel like shorting CHF/JPY instead? That’s fine, you can still catch a pip or two if you think that the current momentum still has legs, or that CHF/JPY won’t find support until it falls by at least another couple hundred pips.

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line