Whether you’re into trends, reversals or ranges, I’ve got you covered on today’s set!
Take a look at these long-term setups on EUR/CHF, NZD/JPY and crude oil.
EUR/CHF is in correction mode, and it seems to be closing in on a long-term area of interest.
Will euro bears return soon?The pair is already approaching the falling trend line that’s been holding since the beginning of the year.
Now this happens to be right smack in line with a former support area around the 1.0100 major psychological mark, the 61.8% Fibonacci retracement level, and 200 SMA dynamic inflection point.
The 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside, and the gap between the two is widening to reflect strengthening selling pressure.
At the same time, Stochastic has been indicating overbought conditions or exhaustion among buyers. Heading south would mean that sellers are back in the game and could take EUR/CHF back down to the swing low or lower.
Keep your eyes peeled for reversal candlesticks around the 50% Fib at parity, too!
WTI Crude Oil (USOIL): 4-hour
Now this one might be bracing for a trend reversal, fellas!
I’m seeing what appears to be an inverted head and shoulders pattern being completed on the 4-hour time frame of WTI crude oil. Price has yet to test the neckline around $93-95 per barrel and break higher to confirm that an uptrend is due.
The moving averages just made a fresh bullish crossover to hint that the tide is turning in favor of buyers this time. If that’s the case, the commodity might climb by the same height as the chart pattern.
Stochastic is still pointing down, though, so price might follow suit until oversold conditions are met. A break below the area of interest at $84 per barrel around the shoulders could invalidate the reversal formation.
Heads up, Kiwi bears!
NZD/JPY is inching closer to testing the very top of its range visible on the daily time frame. This one’s been holding since April this year, so it might still be pretty solid.Stochastic is already in the overbought region to suggest that buyers could use a break and let sellers take over from here.
If that’s the case, NZD/JPY could slide back to the bottom of the range at the 81.00 handle or until the area of interest around 84.00.
Just be careful since the 100 SMA is still above the 200 SMA to hint that there’s a chance the ceiling might break. If that happens, better be ready to catch a rally that’s roughly the same height as the range!