Comdoll traders huddle up!
Today we’re looking at a range support for NZD/JPY and a Fib retracement opportunity on GBP/AUD.
Get ’em while they’re hot!
NZD/JPY is sporting wicked wicks just under 64.00, which isn’t surprising since the area is also around a range support that hasn’t been (successfully) broken since late March.
What got me lookin’ at the chart today is the hidden bullish divergence on the 4-hour time frame. Think it will lead to another bounce from the range support?
Buying at current levels would make for a good reward-to-risk ratio especially if you aim for the range resistance under the 66.00 mark.
If you’d rather sell the Kiwi against the yen, however, then you’ll definitely want to wait for a clear break below 63.75 before you eye previous areas of interest like 63.25 or 62.50.
Whichever bias you choose to trade, make sure you’re aware of NZD/JPY’s average volatility! You don’t want price to hit your stops just before price takes off, do you?
Yen crosses not your thing? Check out GBP/AUD’s setup!
The pair is trading near the 1.8950 area, which is right around a 61.8% Fib retracement, previous resistance zone, AND the 200 SMA on the daily time frame.
Note that the pair is still consolidating around the level so we can’t be too sure about its next direction just yet.
A bounce from the 61.8% Fib could push GBP/AUD to the 1.9450 levels near the 100 SMA or even the previous highs above the big 2.0000 mark.
Of course, it’s possible that the bears could maintain their momentum and drag the pound below the SMA support to hit previous support levels near 1.8700 or the 1.8450 levels.
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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