Chart Art: Range and Retracement Opportunities on EUR/JPY and EUR/NZD

It’s all about the euro on today’s canvas, as we explore potential support levels on EUR/NZD and EUR/JPY‘s charts. Get ’em while they’re hot!

EUR/NZD: 4-hour

After falling sharply in the last trading session, EUR/NZD looks ready for a bit of a bounce.

It’s having trouble trading below the 1.6875 area, which is right smack at a 61.8% Fib retracement on the 4-hour chart. What’s more, it lines up with a support and resistance level from way back in early December!

Are the 4-hour candlesticks are hinting at a bounce in the making? Buying at the first signs of bullish momentum would give you a sweet reward-to-risk ratio especially if you aim for the previous highs near 1.7100 and you place your stops just below the 200 SMA.

Think the euro bears are only getting started? You can wait for EUR/NZD to make new February lows before you aim for areas of interest like 1.6750 or 1.6670.

EUR/JPY: Daily

Here’s one for the range playas out there! EUR/JPY looks ready to bounce from the 120.00 major psychological handle that has been supporting the pair since mid-October.

Of course, it helps that stochastic is chillin’ in the oversold region AND that there’s a bullish divergence cooking on the daily time frame.

Buying at current levels would give you monster pips especially if EUR/JPY bounces all the way up to the 122.50 range resistance.

If you’d rather bet on a range breakdown, however, then you’ll want to see a clear break first and maybe aim for 118.00 or 117.00 for good risk ratios.

Good luck trading this setup, yo!

Forex Chart Settings:

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