Word up, peeps! Let’s use today’s intraday charts update to check on our old setups on EUR/NZD and GBP/CHF. And it goes without sayin’ that we’ll be lookin’ for fresh plays as well. Know what I’m sayin?
If y’all can still recall, we had a Fibonacci retracement play going on over at EUR/NZD’s 1-hour chart way back on June 28. If y’all can no longer recall, then check out June 28’s intraday charts update here.
Anyhow, the pair just pulled back to 1.5490 back then, so we was lookin’ to go long on a a bounce from 1.5490 since that price level was just above the 50% Fibonacci retracement.
And back then, I told y’all that if 1.5490 hold and bullish momentum builds up and the pair smashes past 1.5650, then bulls will likely be shooting for 1.5850 and then 1.6130 next.
Well, check out how price action played out, dawg. That’s right! So give yo self a pat on the back for bagging between 200 to 400 pips, depending on when you were able to jump in. Aww, yea!
With that out of the way, the pair reached 1.5850 as expected but the pair has yet to reach 1.6130, so them bulls will likely be gunning for 1.6130 next.
And presently the pair is pulling back and we’re expecting support to form at 1.5720 since the pair appears to be respecting that there fresh rising trend line and the closest area of interest that lines up with rising trend line is at 1.5720. Also, stochastic is already signaling oversold conditions and all that, so the pair will likely be taking off soon.
But in the unlikely scenario that the pair fails to take off, then y’all may wanna think about bailing yo longs if the pair breaks the trend line and smashes past 1.5650. And of the pair reaches all the way down to 1.5490, then it’s definitely game over for the bulls.
We found that there ascending channel back on July 7. And back then, the pair was at the mid-channel area, which happens to line up rather nicely with the area of interest at the 1.2400 major psychological level.
As such, I told y’all that there was a good chance that support may form there and send the pair higher without ever reaching the channel’s support area.
Well, support did form and the pair spurted higher to the channel’s resistance area and then went back down to test the channel’s support area. Congratulations are therefore in order if you were gangsta enough to jump in with a long. And if you continued to play the channel by shorting at the channel’s resistance area, then I gotta say that you’ve got mad skillz, dawg.
For today’s play, we’re lookin’ mainly to go long on the pair since it has just bounced off the channel’s support area. We’re extra cautious, though.
See that rising trend line there? As y’all can see, the pair recently broke that trend line when it slumped lower to test the channel’s support area. And since the pair is moving back up, the broken trend line may act as resistance. And all the more so, since the rising trend line is currently aligned with the 200 SMA, which may act as dynamic resistance, as well as the area of interest at 1.2460.
If the pair starts to hesitate at 1.2460, then y’all may wanna start thinkin’ about flipping to a shorting bias since that may mean that them bears are trying to attempt a downside channel break. A downside channel break needs to clear 1.2250 to get confirmed, though, so bears will likely be gunning for that initially.