We’re all about NZD today with not one, but TWO long-term trade setups!
Think you can spot opportunities from NZD/JPY and AUD/NZD’s daily time frame charts?
Check them out!
First up is a nice and simple trend on NZD/JPY’s chart.
See, the pair is about to hit the 82.00 psychological handle that lines up with a channel support that’s been holding since mid-2022.If the current candlestick‘s long wick is any clue, NZD already has buying interest even before it hits the channel support zone.
Will we see NZD/JPY extend its lowkey uptrend?
Buying at current levels or at the first signs of bullish momentum would yield a good risk ratio especially if NZD/JPY jumps back up to the 88.00 previous resistance area.
If you see NZD/JPY extend its downswing, however, or if the 100 SMA starts crossing below the 200 SMA, then y’all should be ready for the uptrend possibly ending and sending NZD/JPY to the 80.00 psychological handle.
Who’s up for a retracement trade?
If you are, then you’ll want to see AUD/NZD fast approaching the 1.0850 level that lines up with the 38.2% Fibonacci retracement of late 2022’s downswing.A rejection at the Fib and previous resistance zone would support the 100 SMA crossing below the 200 SMA and hinting at a bearish trend.
AUD/NZD could dip back to its 1.0500 lows or even head for the 1.0300 lows seen in 2021.
If AUD/NZD extends its upswing instead, it could test the 1.1000 area of interest before seeing enough sellers.
In fact, AUD buyers and NZD sellers can take advantage of AUD/NZD’s bullish momentum until the pair sees enough selling pressure near the resistance points that we’ve highlighted.
Good luck and good trading this one!