It’s time to talk ranges and, no, it has nothing to do with the gas or electric ones you’re using for your barbeques.
I’m talking about non-trends that present pip opportunities!
Check out USD/JPY and EUR/NZD’s charts and lemme know what you think:
USD/JPY: 1-hour
USD/JPY recently broke above its mid-range levels but has encountered some resistance around the 110.00 major psychological level.
Now, it’s possible that the pair can make its way to the 110.60 range resistance zone that’s been around since the start of July.
You’ll have to wait for some momentum, though, because dollar bears are putting up a decent fight around the current levels. It also doesn’t hurt them that there’s a small divergence on the 4-hour time frame.
Consistent trading above the 110.00 mark could lead to a move to the 110.60 range resistance that we’re watching. If you see USD/JPY trading back below its mid-range levels, though, then you also gotta be ready to trade a dip back to the 109.10 range support zone.
EUR/NZD: 4-hour
The euro has been having a good month against the Kiwi, gaining at least 350 pips from its lows earlier this month.
EUR/NZD is now approaching 1.7100, which has been holding as resistance since mid-June. With Stochastic showing “overbought” conditions, can the euro extend its upswing?
Shorting at the first signs of a rejection at 1.7100 would yield a good risk ratio especially if you aim for the 1.6700 support.
But wait! Keep in mind that the current upswing looks like it has legs and could always lead to a breakout above the range resistance.
A clear break above 1.7100 could lead to retests of the 1.7225 and 1.7340 previous areas of interest.
