Chart Art: Fib Retracement Plays on EUR/JPY and NZD/CAD

National Financial Solution > Forex Trading > Chart Art: Fib Retracement Plays on EUR/JPY and NZD/CAD

Today’s batch of charts is for the currency cross traders out there!

Whether you’re into short-term plays or you prefer trading them daily charts, I got yo back with hot setups on EUR/JPY and NZD/CAD.

Check them out!

EUR/JPY: 1-hour

EUR/JPY 1-hour Forex Chart
EUR/JPY 1-hour Forex Chart

Remember the uptrend play that we spotted a few days back? Well, EUR/JPY has popped up since then and now it looks like it’s giving us another opportunity.

See, EUR/JPY’s downswing is getting a lot of pushback just under the 133.00 psychological handle.

And why not? The area lines up with a 61.8% Fib retracement AND is also around the SMAs and a channel support that has been around since late April.

Euro bulls can buy at the first signs of a bounce. The 133.50 previous highs would give you decent pips but you can also hold out for new May highs if you’re confident in the euro gaining more ground against the yen.

Meanwhile, euro bears would have to wait for a clear break below the channel support. If you do see a downside breakout, then you gotta be prepared for a trip to 132.65 or even the 132.50 previous support.

NZD/CAD: Daily

NZD/CAD Daily Forex Chart
NZD/CAD Daily Forex Chart

After breaking below (and retesting!) a channel support, NZD/CAD looks committed to its new downtrend.

Currently, the pair is headed for the .8920 zone that’s just below the 100 and 200 SMAs and is right smack at a 61.8% Fib retracement of the last downswing.

A rejection at the trend line resistance would mean that Kiwi bears still have moves to make. Bears can short at the trend line and aim for May’s lows for a good reward-to-risk ratio.

Think NZD/CAD will go back to its uptrend instead? You can wait for a break above the trend line resistance and then aim for the .9070 previous highs or even a return to the broken channel that we’ve marked.

Good luck and good trading this one!

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