We’re turning our spotlight on the European currencies today!
Check out these charts!
Pattern alert! GBP/CHF is poppin’ up higher lows that are steeper than the higher highs. We’re talking about a rising wedge over here!If you’re new to the charting gig, you should know that rising wedges tend to be bearish because bulls just aren’t interested in making new highs as they are in maintaining higher lows.
GBP/CHF is hanging around the middle of the pattern rn, but a dip below the trend line support could open the pound to a drop to the 1.2550 zone.
An upside breakout, on the other hand, could push GBP/CHF to the 1.3100 – 1.3200 previous inflection points.
In case you were too busy cheering on Ever Given to freedom, then you’ll know that EUR/NZD got rejected at the 1.7000 major psychological handle near the 38.2% Fib retracement on the daily.Has the pair fallen by a strong 200 pips since the resistance? Yes.
Can you still short the euro against the Kiwi? Yes but in italic.
You still have about 400 pips until the 2021 lows, which would still give you a pretty good risk ratio even if you place your stops just above the Fib and 100 SMA area.
If you’re not convinced that the euro can fall further against the Kiwi, though, then you can also be on the lookout for a decisive pop above the Fib areas and 100 SMA for the first signs of reversal.
Good luck and good trading this one!