Ready to get busy with forex charts this week?
Today, we’re taking a closer look at EUR/JPY and NZD/USD’s consolidations to see if there are pips to be made from possible breakouts.
Get ’em while they’re hot!
The euro has been seeing lower highs against the yen since the start of the month!The bulls have drawn the line at the 129.60 area, though, which is why we’re seeing a descending triangle on the 1-hour time frame.
Euro bears can wait for a retest of the trend line resistance near the 100 and 200 SMAs for a good risk ratio. If you’re not sure about an extended EUR/JPY downtrend, though, then you can also wait for a break below July’s support for a breakout play.
Feel like EUR/JPY is due for an upside breakout instead? Look for a clear break above the trend line AND SMA resistance levels for signs that the euro could pop back up to the 130.50 or 131.00 previous areas of interest.
Here’s one for the range playas out there!NZD/USD is consolidating between the .7000 major psychological handle and the .6950 mark that lines up with a key support level back in March.
Kiwi bulls who see some upside action can buy at current levels and still see a decent risk ratio especially if NZD/USD rockets back to the .7300 range resistance.
If you’d rather short the Kiwi against the dollar, however, then you’ll want to do it after NZD/USD dips below June and July’s lows. The 100 SMA crossing below the 200 SMA wouldn’t hurt either.
Whichever bias you end up trading, make sure to use your best risk management moves so you can trade long enough to see consistent pips come your way!