I’m keepin’ it simple with a couple of fresh range setups on the daily charts of GBP/NZD and the FTSE 100 index this week.
Oh, and don’t forget this CHF/JPY resistance test!
Better keep your eyes on these key levels:
Missed the breakdown on CHF/JPY?
You might still have a chance to catch the potential long-term reversal, as the pair is pulling up to the former trend line support.
The Fib retracement tool shows that a nearby area of interest lines up with the 38.2% to 50% levels, so sellers might also be hanging out around this region.
If any of the Fibs hold as resistance, CHF/JPY could resume the downtrend and slump back to the lows at 142.90 or lower.
Just be careful since technical indicators are still reflecting the presence of bullish vibes. For one, the 100 SMA is above the 200 SMA and is showing no signs of crossing down just yet.
Also, Stochastic has plenty of ground to cover before reaching the overbought region to signal exhaustion among buyers.
If you’re feeling glum about the U.K. economy, then you should check out this long-term range resistance test on the FTSE 100.
The equity index is once again retreating from the ceiling around 7,630 and might be due for another drop to support near the 7,000 handle.
Technical indicators are in favor of this bearish scenario, too. The 100 SMA is below the 200 SMA, which means that the path of least resistance is to the downside.
On top of that, Stochastic is on the move down, so the FTSE 100 could follow suit while bears are in control.
Just watch out for near-term support around the dynamic inflection points at the moving averages, which happen to be right at the middle of the range.
This pair is inching towards the bottom of its range visible on the daily time frame, so I’m keeping an eye out for a possible bounce.
Where are buyers waiting?
Support at the 1.8850 minor psychological level could attract pound bulls again, possibly taking GBP/NZD back to the resistance at 2.0300.
If the floor is broken, on the other hand, the pair could tumble by the same height as the rectangle formation. That’s roughly 1,4500 pips yo!
Technical indicators are giving mixed signals, though, as the moving averages are oscillating while Stochastic is dipping close to the oversold region.
Keep your eyes peeled for reversal candlesticks at the range support if you’re hoping to go long!