It’s the start of a brand new month and quarter, forex fellas! Here are the setups I’m eyeing on the currency crosses.
First up is this long-term range setup on EUR/NZD. Price has made it all the way close to the resistance, and I’m still kicking myself for second-guessing my long trade idea!
The pair could be due for a bounce off the ceiling near the 1.7300 major psychological level since stochastic is already indicating overbought conditions. In other words, euro bulls might be feeling exhausted at this point and ready to let bears take over.
In that case, EUR/NZD could slide back to the bottom of the range at the 1.6650 minor psychological mark or at least until the area of interest at the 1.7000 handle. An upside break, on the other hand, could mark the start of an even longer-term uptrend.
Here’s another euro range, but this time I’m seeing a break-and-retest opportunity. You see, the pair already busted through the top and is making a quick correction before resuming the climb.
Stochastic is turning lower, which suggests that the pullback could go on for a bit longer, possibly until the lower Fib levels back inside the range. If the area of interest at the 38.2% level is enough to keep losses in check, the pair could head back up to the swing high and beyond.
Last but certainly not least is this triangle play on the daily time frame of GBP/NZD. The pair is approaching the resistance around the 1.9600 handle and might be due for a bounce.
Buyers might need to take a break soon since stochastic is indicating overbought conditions. Turning lower could draw sellers back in and push the pair back to the triangle support near the 1.9200 handle.
On the other hand, a break past the triangle resistance could spur a long-term climb for this pair. Note that the chart pattern spans 1.8400 to 1.9300, so the resulting uptrend could last by the same number of pips.
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