Remember, remember, it’s the start of November!
Let’s put our brainpower, reason, and plotting skills to the test by checking out EUR/USD and NZD/CHF’s chart opportunities.
Which setup do you think will yield you more pips this week?
Traders dropped the euro like it was going out of style and now EUR/USD is consolidating near the 1.1550 minor psychological handle.
Will the common currency recover against the dollar? I got my eyes on the 1.1600 area, which lines up with the broken ascending channel support on the 1-hour time frame.
A rejection at the broken support would mean that the fourth moving average crossover on the chart above is legit and that EUR/USD could see new Q4 2021 lows in the next few days.
If EUR/USD goes back inside its ascending channel, though, then y’all gotta be ready to trade a short-term uptrend that could take the euro back to its 1.1700 October highs and beyond.
Here’s one for my trend-following friends!
NZD/CHF just bounced from the 100 and 200 SMAs, which isn’t surprising since it’s also near a major area of interest on the 4-hour time frame.
What makes the chart interesting today is that the bounce would be in line with an uptrend that’s been around since late August.
If we are seeing a trend continuation, then Kiwi bulls can buy at current levels and target October’s highs or new Q4 2021 highs for NZD/CHF.
A clear break below the Fib retracement levels and trend line support, on the other hand, would mean that the uptrend has lost steam and that NZD/CHF could be headed for areas of interest closer to .6400.