October 29, 2021

Potential Resistance Levels for EUR/USD and NZD/USD

 A lot of major dollar pairs saw increased volatility yesterday!

How has dollar price action affected EUR/USD and NZD/USD’s daily charts?

Check them out!

EUR/USD: Daily

Euro bears started the month strong by breaking EUR/USD below the big 1.1700 support on the daily time frame.

The party only lasted until mid-October, though, as the bulls eventually gained enough support at 1.1530 before pushing the pair back up to the broken support zone.

Let’s see if 1.1700 turns into a resistance. Right now, it lines up with the Fib retracement levels of September’s downswing and is just below the daily chart’s 100 SMA.

Stochastic hasn’t given us “overbought” vibes yet so we could still see some euro strength before the bulls pounce.

A rejection at 1.1700 or the 100 SMA area might lead to a retest of October’s lows.

Continued strength for the euro, on the other hand, could propel EUR/USD to the 200 SMA or at least a retest of the 1.1900 psychological level.

NZD/USD: Daily

In case you missed it, NZD/USD bulls have been taking a chill pill after boosting the Kiwi by at least 1,800 pips since February.

Has NZD/USD’s long-term uptrend run out of steam?

NZD is not only testing but also consolidating the top of a descending channel near the .7200 psychological level. In addition to that, there’s already a moving average crossover!

The cherry on top of this sweet setup is a possible bearish divergence in the daily time frame.

Shorting at the first signs of bearish momentum would get you in at a good price if NZD/USD decides to follow its low-key downtrend. The .7000 psychological and mid-channel area is a good initial target though you can also aim for September’s lows if you see enough selling pressure.

But don’t discount an extended uptrend yet! Keep your eyes peeled for an upside breakout and then sustained buying above .7200.

If you think the breakout has bullish momentum, then you can eye .7400 or even .7500 as potential profit targets.