I’m mixing it up a bit in today’s intraday charts update, and I’ve got a rectangle on EUR/JPY and a Fibonacci retracement setup on GBP/NZD on the menu. Get ’em while they’re fresh!
And if you’re planning to trade within the range, then heads up ‘coz the pair just recently bounced off the rectangle’s support at 127.80 and will likely be gunning for the rectangle’s resistance at 129.20.
Do keep in mind that the risk for a breakout is always there. So if bullish momentum is strong enough that the pair easily clears 129.20, then that likely means that bulls are shooting for 130.10
Conversely, if the pair moves back down and 127.80 fails to hold as support, then bears will likely try to push the pair down towards 126.70.
GBP/NZD has been pulling back recently after trending steadily lower for a few days.
And presently, the pair appears to be hesitating just below the 200 SMA. And if we apply our handy Fibonacci tool, we can see that the pair is between the 50% retracement level at 1.8620 and the 38.2% retracement level at 1.8540.
Stochastic has been milling around the overbought area for some time now, so resistance will likely form soon.
But if the pair continues to move higher past 1.8620, then the 61.8% retracement level at the 1.8700 major psychological level would be the next pullback area to watch.
And if that also fails to hold as resistance, then y’all may wanna think about bailing yo shorts (if you still have ’em) since clearing 1.8620 may be a sign that bulls are gunning for 1.8840 next.
In any case, y’all just make sure to remember to practice proper risk management as always, a’ight? Peace out!