Where my forex people at?
Check them out, yo!
Late last week we talked about GBP/NZD hitting trend line resistance near a 38.2% Fib and the 200 SMA. Well, I hope you took the short trade because the pound did end up making new September lows against the Kiwi!
But that was last week. Today we’re on to another trend line retest, this time closer to the 200 AND the 100 SMA on the 1-hour time frame.Before you short the pound like there’s no tomorrow, take note that GBP/NZD barely made new lows the last time. What’s more, the 100 SMA is catching up to the 200 SMA, enough to consider a possible SMA crossover in the next few hours.
GBP/NZD is currently in a tight consolidation so it’s relatively easier to spot the pound’s next direction. A break above the uber tight range would mean a break above the trend line and the 200 SMA and a possible trip to September 17’s highs.
If GBP/NZD sees enough downside pressure, though, then the pair will be on track to make new September lows.
USD/CHF: 4-hourResistance alert! USD/CHF is about 40 pips away from the .9200 major psychological handle that has been keeping the bulls at bay since late July.
Stochastic is already in overbought territory but dollar bears can still wait for an actual retest of the .9200 mark as well as bearish momentum before shorting to get the best reward-to-risk ratio.
Confident that the dollar is in for a bullish reversal? You can buy at current prices and then take profits or at least lighten up at the retest of the .9200 level, or you can wait for an actual break above the range resistance before targeting previous areas of interest near .9325 or .9375.