I’ve got a euro special on today’s canvas!
Check out this simple retracement on EUR/NZD and a potential triangle breakout on EUR/CHF.
EUR/CHF 4-hour Forex Chart by TradingView
Lower highs and higher lows? Why, that’s a symmetrical triangle right there!
EUR/CHF is hanging out at the bottom of this consolidation pattern, still deciding whether to make a bounce or a break.
If euro bulls defend support once more, the pair could make its way back to the top of the triangle just slightly past parity.
On the other hand, a break below the triangle bottom at .9950 could set off a drop that’s the same size as the chart formation or roughly 250 pips.
Technical indicators seem to be pointing to a bullish move, as the 100 SMA is above the 200 SMA while Stochastic is inching close to the oversold region.
In addition, the 200 SMA dynamic inflection point lines up with the triangle support to add to its strength as a floor.
EUR/NZD 4-hour Forex Chart by TradingView
Heads up, Kiwi bears!
EUR/NZD just busted through the ceiling at the 1.7000 major psychological mark. The pair has since reached the next upside barrier at the 1.7100 area and is in the middle of a pullback.
Could this be your chance to catch the potential rally?
The Fib retracement tool shows that the former resistance is spanned by the 38.2% to 50% levels, so buyers might be waiting to hop in right here. A larger pullback could reach the 61.8% Fib closer to the 1.6900 major psychological support.
Stochastic seems to be hinting at a pickup in bearish vibes for now, as the oscillator is just starting to head south from the overbought area.
Also, moving averages have yet to catch up to the pop higher, as the 100 SMA is still below the 200 SMA to reflect downside momentum.
Better wait for these technical signals to line up before hopping in a long position!
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