Chart Art: Breakout and Consolidation Setups on CHF/JPY and EUR/NZD

Heads up, short-term traders!

Both EUR/NZD and CHF/JPY are stuck in consolidation these days, but are we about to see big breakouts soon?

Here are the levels I’m watching closely.

EUR/NZD: 1-hour

EUR/NZD 1-hour Forex Chart

Think this EUR/NZD range would continue to hold?

The pair just bounced off the ceiling at the 1.7450 minor psychological mark and might be on track to test support around 1.7130.

But is this a return in bullish pressure I’m seeing?Stochastic is heading higher to confirm that buyers have the upper hand and might be able to take EUR/NZD back up to the range resistance again.

Sustained upside momentum might even lead to a break higher, which could then set off a rally that’s at least the same height as the range or 320 pips.

Note that the 100 SMA is still above the 200 SMA to reflect bullish pressure, even though the gap between the indicators is narrowing.

Just watch out for a downward moving average crossover that might encourage more sellers to jump in!

CHF/JPY: 1-hour

CHF/JPY 1-hour Forex Chart

Looks like this one’s bound to bust out of its consolidation pattern soon!

CHF/JPY is stuck inside a symmetrical triangle at the moment, and the battle between buyers and sellers is heating up.Breaking above the triangle top around 146.50-147.00 could trigger a rally that’s the same size as the chart pattern, which spans around 600 pips.

On the other hand, a break lower could be followed by a selloff that’s of the same height. And this is what technical indicators seem to be hinting at.

The 100 SMA is below the 200 SMA to suggest that support is more likely to break than to hold. CHF/JPY also hit a ceiling at the 200 SMA dynamic resistance, which lines up with the top of the triangle.

In addition, Stochastic is on the move down, so the pair could keep following suit while bears are in control. The oscillator has plenty of room to head lower before reflecting exhaustion among sellers, we could be looking at a lot of downside from here.

As always, practice proper risk management when trading these setups!