Charts of Interest: EURUSD & NZDJPY

Well we are approaching the end of the week, however there’s still plenty of trading left to be done. The markets have shown some really nice looking charts this week and we thought we would take you through two that are of interest.  

Firstly EURUSD has moved back into a downtrend on the daily chart after having a bit of a pullback and a sideways consolidation. As you can see in the daily chart below, EURUSD has broken down through the higher low that was formed and created a new lower low therefore we see the momentum once again to the short side. As always we have drilled down timeframes looking for a potential entry opportunity.  

The 120 minute chart illustrates a potential scenario that might play out and present an opportunity for us to get short EURUSD. The 120 minute chart is now in a nice smooth downtrend and undergoing a pullback within this trend and we have marked out an area where we think it should find resistance should it reach that level. This level, marked by the blue line, lines up with the Fibonacci pullback sweet spot (between the 50 and 61.8% Fibs) and it also clusters with the prior level of support on the left hand side of the chart. If we do see price retrace back up to this level we will be looking for reasons to sell EURUSD short.

We also like the way NZDJPY has started moving with some strong bullish momentum. As you can see in the 60 minute chart below we are in a strong uptrend and we especially like the way price has been respecting strong levels of support and resistance. Take the lower level marked out at 90.60 for example. Price found resistance there on the nose, then broke through strongly and resistance became support. Now we have had another leg up of the trend and the 91.00 level has acted as a bit of resistance on the way up. We therefore expect that it will also act as support should price pullback to 91.00 from here. Therefore we will be keeping a very close eye on how price reacts to the 91.00 level as it could present a great opportunity to get long.

Happy Trading!  

Regards,
The TWP Team