This week we will be looking a long EUR/NZD and GBP/USD opportunities.
EUR/NZD is testing multi year lows by the 1.60-1.62 region. This area has provided support to the pair on numerous occasions. The pair has been in a steady downtrend and has recorded negative closes for the previous 8 trading sessions. The daily RSI reading is deeply oversold. This along with the pair being at multi-year support provides a compelling reason for a bounce. I will be looking to long this pair close to 1.62 with stops below 1.6150 and targets of 1.65 and 1.6750.
GBP/USD is also coming up against a multiyear trend line and horizontal support in the 1.52-1.5250 region. We will be looking for buying opportunities in this region with stops below the reversal lows (potentially 1.515) and targets of 1.55 and 1.5750.
Chart 1: EUR/NZD (Monthly)
Chart 2: EUR/NZD (Daily)
Chart 3: GBP/USD (Weekly)
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