Word up, peeps! If you’re lookin’ for trend plays on the Kiwi, then y’all may wanna check out today’s intraday charts update since I’m serving up a couple of channels on NZD/USD and NZD/CHF.
NZD/USD has been tilting to the upside recently. And if we connect the most recent peaks and troughs, we can see that the pair appears to be trapped inside that there ascending channel.
The pair is currently moving back down towards the channel’s support area, which should be at or just below the area of interest at 0.7280. Y’all may therefore wanna start lookin’ for opportunities to go long on the pair. And all the more so, given that our technical indicators seem to support further upside moves.
Stochastic, for one, is just about to enter overbought territory. Another is that them moving averages are already in uptrend mode. Yet another technical argument is that if the pair tests 0.7280, then the 100 SMA will likely act as dynamic support.
Do note, however, that the pair failed to reach the channel’s resistance area before going back down. And that may be a sign that bulls are losing control, which slightly increases the chance for a downside channel breakout.
And if such a scenario plays out, then y’all may wanna think about bailing yo longs, especially if the pair moves lower past 0.7250.
Like NZD/USD, NZD/CHF has also been trending higher while apparently trapped inside an ascending channel.
And like NZD/USD, NZD/CHF is also just about to test the channel’s support area, which should be somewhere around the area of interest at 0.6920. Moreover, stochastic has just reached oversold territory. Y’all may therefore wanna get ready to start lookin’ for opportunities to go long on NZD/CHF as well.
However, NZD/CHF also has the same potential problem as NZD/USD in that the pair failed to test the channel’s resistance area before moving back down again, which may mean that bulls are running out of steam.
If that’s indeed the case, then y’all may wanna prepare for a downside move as well, especially if the pair takes out 0.6870 after staging a downside breakout.
In any case, just remember to proper risk management as always, a’ight? Peace!