Welcome to Friyay trading, forex friends!
Today we’re talking trends and breakout plays on NZD/CHF and EUR/USD.
Who’s up for trading these setups?
Those who like clear trends would looove to see NZD/CHF consolidating around the .6450 levels.
As you can see, the area lines up with the 50% Fibonacci retracement of this week’s upswing as well as the 100 SMA on the 1-hour chart. What’s more, it’s also near a trend line support that’s been around since the start of the month!
Trend continuation playas can start loading up long positions around current levels and aim for this week’s highs just above .6500.
Not confident about NZD showing further strength? You can also wait for a bit of momentum before jumping on the uptrend.
If you’d rather sell NZD against CHF, you’ll want to do it as soon as NZD/CHF sustainably trades below the trend line support or maybe even the 200 SMA on the 1-hour chart.
EUR/USD is consolidating inside what looks like an ascending triangle after breaking below the big 1.1100 support earlier this month.
What makes the setup interesting today is that EUR/USD is hanging out at the triangle’s trend line support and is starting to show bullish pressure.
Will EUR/USD revisit the broken 1.1100 zone? More importantly, how will the pair react to a retest?
A rejection at the level could drag EUR back to the pattern’s support zone.
If EUR/USD clearly breaks above the 1.1100 resistance, however, then we could see the euro trade at the 1.1300 or even the 1.1500 previous inflection points.