Sup, fam? I’ve got a rectangle pattern on NZD/CHF and a Fibonacci retracement setup in today’s intraday charts update that y’all may like.
NZD/CHF has been trading sideways while apparently trapped between resistance at 0.6820 and support at 0.6720. This gives us a 100-pip trading range or rectangle pattern to play with.
And if any y’all wanna trade within the range, then heads up because the pair is currently testing the rectangle’s resistance area.
If resistance at 0.6820 holds, then the pair will likely be gunning for the rectangle’s support at 0.6720. And there’s a good chance that resistance will hold because stochastic is already signaling overbought conditions and all that.
However, the risk for a breakout is always there. So if 0.6820 fails to hold as resistance, and the pair then clears 0.6840 on strong bullish momentum, then that likely means that bulls are shooting for 0.6920. Y’all may therefore wanna prepare for such a scenario as well.
GBP/JPY has been pulling back lately after surging rapidly higher. We’re still bullish on the pair, though, since them moving averages are still in uptrend mode.
Also, if we apply our Fibonacci tool, we can see that the pair is currently hesitating at the 50% retracement level, which happens to sit right smack on the 150.00 major psychological level.
There’s therefore a good chance that support will form. And all the more so, given that stochastic is already pointing back up again after dipping into oversold territory.
If support does form, do keep an eye on how the pair reacts to 150.70 since pound bears would likely be waiting to counter-attack there and push the pair back down.
And in case support fails to form, then y’all may wanna switch to a bearish bias on the pair if the pair moves lower past 149.30.
In any case, just remember to always practice proper risk management, a’ight?