Thinking of calling it a week?
Not before you give NZD/USD and GBP/CHF’s charts a chance!
I don’t think you’d want to miss not one but TWO retracement setups that could yield pips in the next trading sessions. Check it!
NZD/USD: 1-hour
NZD/USD has recently broken above what looks like a falling wedge on the 1-hour time frame.
Breakout playas better pay attention because Kiwi is back at the broken resistance level…that happens to line up with the 100 and 200 SMAs. Coincidence? Only if you want it to be!An upside bounce from the .6780 zone would mean that NZD/USD is ready for further gains.
The height of the base of the wedge – around 125 pips – is a good initial target but you gotta watch for momentum in case NZD/USD sees a faster and longer uptrend.
Don’t believe NZD/USD is ready for a reversal just yet? Look out for consistent trading below the wedge resistance, which could drag NZD back down to the .6730 lows or the .6700 area of interest.
GBP/CHF: 4-hour
If you’re more into textbook trends, then you’re gonna love what’s happening on GBP/CHF’s 4-hour chart.
See, the pound tried (and failed) to breach the 1.2350 mark and now it’s finding resistance at the mid-channel level and the 38.2% Fibonacci retracement of the last major downswing.Will GBP/CHF extend its downtrend? Shorting at current levels is a good play if you’re betting on the pound hitting its November lows or making new December lows in the next couple of days.
If you think that GBP/CHF is due for an uptrend, though, or if you believe that the pound will see more gains before the bears step in, then you can adopt a wait-and-see mode and watch how GBP/CHF reacts to its current resistance levels.
What do you think? Which way will GBP/CHF go?