Happy Monday, my dudes!
We’re taking a closer look at currency crosses today because both EUR/JPY and NZD/CHF are hanging out near potential support zones.
Think we’ll see bounces from these pairs? Check out their charts!
EUR/JPY: 4-hour
Is EUR/JPY ready for a new trend?
EUR/JPY is finding support at the 131.00 psychological level that lines up with the 200 SMA as well as the 50% Fibonacci retracement of the last upswing.
A bounce from 131.00 would hint that EUR/JPY is ready for an upswing after breaking a downtrend and then consolidating from May to October.
The 133.50 previous highs is a good area to target if you’re one of them euro bulls though you can also aim higher if there’s enough momentum.
If you’d sell the euro against the yen, then you’ll want to do it after EUR/JPY breaks below the 200 SMA and heads back to the August to October range levels.
NZD/CHF: Daily
I know you’ve been looking at comdoll pairs so you can’t miss that NZD/CHF dipped back to the .6500 zone that’s right smack at a trend line that has been supporting Kiwi since March 2020.
This time around, the bulls have extra support from the 100 and 200 SMAs near the trend line. Even Stochastic is giving us “oversold” vibes!
Buying at current levels would give you the best risk ratio especially if NZD/CHF pops back up to its October highs near .6600.
If NZD/CHF ends up breaking and trading below its trend line support, however, then you should also be ready to trade a downside breakout. .6300 is a good area to target initially but you can also look at .6150 if there’s enough selling pressure after a breakout.