Welcome to mid-week trading, forex brothas!
It’s all about the dollar today, as we take a closer look at USD/JPY and NZD/USD‘s charts.
Which setup would you rather trade?
USD/JPY: 1-hour
USD/JPY looks like it’s finding support at the 107.00 major psychological handle, which also happens to line up with a support and resistance trend line.
What makes the chart interesting today is that 107.00 is also just above a 50% Fib retracement and the 100 SMA on the 1-hour chart.Can dollar bulls sustain a momentum? Buying at current levels would mean you’ve entered at a good price if USD/JPY ends up poppin’ back up to May’s highs about 80 pips away.
If you think that this week’s upside “breakout” is just a fakeout, though, then you can also wait until USD/JPY trades below the 100 and 200 SMAs before aiming for previous lows near 106.00.
NZD/USD: 1-hour
Here’s one for the range traders out there! NZD/USD is flirting with the .6000 MaPs, which is right smack at a range support that’s been containing the bears since late April.
This time around there’s also a low key divergence on the 1-hour time frame. Question is, will it lead to a Kiwi bounce?Buying at the first signs of bullish pressure would yield a good reward-to-risk ratio especially if .6000 holds as range support.
Feel like NZD/USD is due for a downside breakout instead?
That’s aight, you can also wait for a break below .6000 and then maybe aim for retests of the .5950 or .5925 previous support areas instead.
Watch this one closely, yo!
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
