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After finding buyers at the .7130 June lows, NZD/USD has traded higher and is now on its way to the .7175 – .7200 zone.
As you can see, the potential selling area lines up with a channel resistance as well as the 100 and 200 SMAs on the 1-hour time frame. And if that’s not enough to get you to start making trading plans, then you should know that a bearish divergence is also on the table.
NZD/USD hasn’t shown signs of sustained selling pressure just yet, so momentum bulls can still ride the upswing from the support bounce until we see bearish candlesticks.
If you’re not comfortable buying the Kiwi against the dollar right now, though, then you can also wait until NZD/USD is closer to the resistance area that we’re eyeing and then pull the trigger as soon as you see convincing bearish candlesticks.
Where my range playas at?
USD/CHF is having trouble making new highs above the .9000 psychological handle, which is understandable as it also lines up with a mid-range resistance on the 4-hour time frame.
It also doesn’t help the bulls that Stochastic is already yelling “OVERBOUGHT!” on the chart. Okay so maybe Stochastic doesn’t yell. But you can!
Shorting at current levels would give you a decent risk ratio especially if the dollar dropped back to its June lows against the franc.
If you’d rather buy USD/CHF, however, then you gotta be ready to do it as soon as the pair makes new weekly highs. Just remember that buyers may need a new catalyst to get energized again!