It’s all about trends and retracements on the cross pairs I’m eyeing this week. Think I should go with the flow or wait for reversals?
First up is this fresh ascending trend line that appears to be forming on the 4-hour time frame of EUR/JPY. Price just busted through the resistance around 129.00 to 130.00 but seems to be pulling back after hitting the 132.00 mark.
Applying the handy-dandy Fib tool on the latest swing low and high shows that the levels span this area of interest and trend line, which might be enough to keep losses at bay.
Stochastic has some room to slide before hitting oversold territory and turning back up, so euro bulls just might be waiting to charge.
Price action seems to be a bit choppy for EUR/NZD, but the pair has been able to form slightly lower highs and lows enough to create a shallow descending channel on its 1-hour time frame.
After a bounce off the top, the pair now seems to be setting its sights on the channel support around the 1.7100 handle. However, support at the mid-channel area of interest is still holding like a boss, especially since stochastic has pulled out of the oversold region.
Lastly, I’ve got this classic break-and-retest play on NZD/CHF, with price still hovering around the area of interest. If you’re Kiwi bearish, there could be a good chance to catch momentum on a break of the short-term consolidation.
Waiting for a higher correction could also be a nice entry strategy, as the pair has yet to test the falling trend line closer to the 50% Fib and .6850 minor psychological resistance. Stochastic is pointing higher anyway, so there may be some bullish pressure in play until it hits overbought levels.
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