Where my Kiwi-trading friends at?
Today we’re looking at long-term support and resistance opportunities for NZD.
Take a look at EUR/NZD and GBP/NZD’s charts to see if you can make trades out of their patterns!
EUR/NZD: Daily
Euro bulls have had a good couple of months against Kiwi, rising by more than a thousand pips between November to January.
The tides changed at the start of the month though! EUR/NZD ended up bouncing from the 1.7350 area and it’s now trading closer to 1.6750.
Take note that the current price lines up with not only the 50% Fibonacci retracement of the last upswing but also the 200 SMA on the daily chart. Heck, it’s a few red candlesticks away from the broken trend line resistance!
Bulls who would like to play the break-and-retest game can start scaling in at current levels and adding once EUR/NZD sees bullish momentum. The 1.7350 previous high is a good starting point though you can also target levels above 1.8000 if there’s enough buying pressure.
Feel like EUR/NZD is more likely to return to its 2021 downtrend instead? You might want to wait until EUR/NZD is firmly below the trend line support before you aim for previous lows near November’s prices.
GBP/NZD:Weekly
I spy with my eye a simple range play!
GBP/NZD just turned from the 2.0500 psychological area, which marks the resistance of a range that’s been around since October 2018. That’s around the time our dude Rami Malek gave us strong Freddie Mercury vibes!
Pound bears who are paying attention to the range resistance and overbought Stochastic signal can short at current levels and aim for the 1.9900 inflection point or the 1.9500 mid-range levels.
If you’d rather buy GBP/NZD, then you can zoom in on the lower time frames to see if the pair gains enough momentum to retest the big 2.0500 zone.
