Would you rather trade a trend or a range play?
First up is an easy peasy trend play for ya.NZD/JPY is consolidating just above 75.50, which isn’t surprising since it’s near an ascending channel support AND the 200 SMA on the 1-hour chart.
Can the Kiwi extend its gains against the yen?
Buying at current levels is a good bet if you believe that NZD/JPY’s uptrend still has legs.
Kiwi bears, on the other hand, can watch out for a (clear) break below the channel and the 200 SMA before they can start aiming for inflection points like 75.00 or 74.75.
Range traders huddle up!
GBP/NZD is about to hit the 1.9150 zone, which lines up with a range resistance level that hasn’t been broken since mid-January.What makes the potential retest interesting today is that Stochastic is also flashing an overbought signal on the 4-hour time frame.
Will the pound weaken against the Kiwi as soon as GBP/NZD hits 1.9150?
Shorting at the first signs of bearish pressure around the level would give you the best risk ratio especially if you place your stops just above January’s highs and aim for a revisit of the 1.8900 range support.
If you’re convinced that the pound can keep on gaining against the Kiwi, however, then you can also place buy orders above January’s highs and then aim for maybe a 200-pip move above the area.