Welcome to mid-week trading, errbody!
Which setup will you likely trade?
NZD/JPY: 1-hourNZD/JPY is having trouble making new highs above 78.40, which isn’t surprising since the area is right around the 100 and 200 SMAs on the 1-hour time frame. What’s more, it’s also near a trend line resistance that’s been around since the pair topped at 79.00 in late April!
If you’d rather buy the comdoll against the safe-haven, though, then you’ll want to do it after NZD/JPY trades and stays above the trend line and 100 SMA resistance zones.
Watch this setup closely!
Rejection #3! For the third time since late February, EUR/GBP got rejected at the .8700 area.The pair is now on its way to .8625, which is near the 200 SMA and an ascending channel support on the 4-hour time frame.
The current downswing isn’t showing signs of reversal just yet, so y’all still have time to draft your trading plans.
Euro bulls can start buying around the channel and 200 SMA support and then aim for the .8700 resistance zone.
Meanwhile, EUR/GBP bears can either jump in on the current downswing and then bail at the first signs of sustained bullish pressure, or they can wait for a break below the channel and the 200 SMA support levels and then aiming for April’s lows.