Here’s one for “break and retest” traders out there! NZD/JPY has recently found support and is heading fast towards the 70.00.As you can see, the major psychological level also lines up with a broken range support AND a 38.2% Fib retracement on the 4-hour chart.
Shorting at the level would give you a good reward-to-risk ratio if you think that NZD/JPY will eventually surpass its February lows.
If you’re not convinced that NZD will lose more pips against JPY, however, then you can also wait until NZD/JPY clearly trades back inside the broken range and take advantage of ranging opportunities instead.
Whichever bias you end up trading, don’t forget to practice good risk management in making your trading decisions.
Good luck and good trading, yo!
EUR/USD has taken a breather from its 300-pip downswing and is now about 200 pips from its February lows.What makes the retracement interesting today is that the pair is fast approaching significant Fib levels on the daily time frame.
1.0950, for example, sits near the 50% Fib and is between the 100 and 200 SMAs. The 1.1000 handle, on the other hand, is juuust above the 61.8% Fib retracement and the 200 SMA.
At which level will the bears attack? The upside momentum hasn’t shown signs of weakening just yet, so you still have time to whip up a trading plan if you’re planning on trading this one.
Shorting at the first signs of selling pressure would get you decent pips especially if you aim for the 1.0750 February lows.
Feel like buying the euro instead? You can also buy at current levels and bail at the first signs of bearish momentum. Just remember to consider EUR/USD’s volatility in placing your stops and profit targets!