It’s a brand spankin’ new trading month, yo!
Think you can make pips from these crosses this week?
First up is a simple range play on EUR/NZD. As you can see, the pair is having trouble trading below the 1.7650 psychological level that has been supporting the euro since the start of May.What makes the setup interesting today is that stochastic is flashing an “oversold” signal, which could attract some euro bulls.
A long trade at current levels could still give you a decent reward-to-risk ratio especially if you place your stops just below the range and aim for the mid-range levels near 1.7950 or even the bigger range resistance at 1.8250.
If you believe that euro bears are gearing up for a downside breakout, however, then you can also wait for an actual break below the 1.7650 support and then target previous areas of interest near 1.7525 or 1.7350.
Can’t get enough of them yen crosses? GBP/JPY is about to test the ceiling of what looks like an ascending triangle on the daily time frame.A break above the 135.50 resistance could take Guppy to a longer-term channel resistance near 140.50 (see fancy dotted channel lines).
If pound bears manage to hold 135.50, however, then we could see a visit to the 132.35 trend line support, or even a trip back to the 129.50 and 126.70 previous support levels.
Which way will GBP/JPY go? Better start writing trading plans so you can make pips no matter where it goes next!