Got a Kiwi special for y’all today!
I’m serving up a neat range opportunity on NZD/JPY and a simple trend pullback on GBP/NZD.
Think these nearby inflection points will hold?
NZD/JPY: 1-hour
NZD/JPY 1-hour Forex Chart
Here’s one for the range traders out there!
This pair has been trading sideways since late last month, finding support at the 81.00 major psychological mark and inching closer to the resistance at 83.35.
Will the ceiling hold again?Technical indicators are suggesting so, as the moving averages and Stochastic both reflect bearish pressure.
In particular, the 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside. In other words, the range resistance is more likely to hold than to break.
Stochastic already reached the overbought region, which means that buyers could use a break right now. Turning lower would confirm that sellers are regaining the upper hand and might drag NZD/JPY back to the range support.
Just keep your eyes peeled for a break above the range resistance since this could be followed by a rally of the same height as the rectangle pattern. That’d be more than 200 pips yo!
GBP/NZD: 1-hour
GBP/NZD 1-hour Forex Chart
Feel like trading a good ol’ break-and-retest setup?
This neat pullback play on the hourly chart of GBP/NZD looks too good to pass up!The pair just broke above the resistance zone around the 2.0000 major psychological mark and has since reached highs near 2.0275.
But before it heads any higher, price could retreat to nearby support levels to gather more bullish energy. The handy-dandy Fib tool shows where more buyers might be waiting.
I’ve got my eyes locked on the area spanned by the 38.2% to 50% Fib levels since this lines up with the former ceiling. The line in the sand for a pullback might be the 61.8% Fib or the dynamic support at the moving averages.
The correction could go on for a while since Stochastic is just making its way down and has some ground to cover before reflecting exhaustion among sellers.
Don’t forget to account for the average GBP/NZD volatility when setting entries and exits because this one tends to spike!
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