Whether you like trading ranges or following trends, I’ve got a couple of short-term setups you should see.
These could work for potential breakouts, too!
Let’s start off with a simple range play on the hourly chart of EUR/NZD.
This pair just recently bounced off the floor around the 1.6140 mark and is making its way up to the resistance at 1.6330 again.
Will sellers defend the ceiling?Technical indicators are suggesting so, as the 100 SMA is below the 200 SMA to confirm the presence of selling pressure.
Also, Stochastic is in the overbought region to reflect exhaustion among buyers. Turning lower would mean that sellers are taking over and could drag EUR/NZD back down to the bottom of the range.
Just be careful since the pair has already climbed above both moving averages, so these could hold as dynamic support levels on dips. The gap between the indicators is narrowing to hint at a bullish crossover, too!
Is the trend still our friend? Or are we about to see the bend at the end?
This pair has formed higher lows and higher highs connected by a rising channel that’s been holding for a couple of weeks now. Another test of support is taking place, and pound bulls could charge right here.If so, GBP/CHF could recover to the top of the channel near the 1.1750 minor psychological mark or at least until the middle at 1.1675.
Technical indicators are pointing to a continuation of the uptrend, as the 100 SMA is above the 200 SMA while Stochastic looks ready to pull higher from the oversold region.
However, I’m also seeing a bit of a bearish flag right at the bottom of the channel, so a reversal might be brewing.
A break below the small consolidation pattern around the 1.1600 mark could be followed by a drop that’s the same height as that long red candle. Better keep those eyes peeled, fellas!