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Chart Art: Breakout Opportunities on EUR/USD and NZD/USD

February 22, 2023| Forex Market

EUR/USD is breaking a trend line support while NZD/USD is sporting a bearish reversal pattern.

Who’s up for trading these USD pairs?

If you are, then you better not miss these opportunities!

EUR/USD 4-hour Forex Chart

EUR/USD 4-hour Forex Chart by TradingView

EUR/USD has been showing higher highs and higher lows since rocketing from its October 2022 lows near .9600.

But is the party over for EUR bulls?

The 100 SMA has crossed over the 200 SMA, something that hasn’t happened since November when EUR/USD saw a bullish crossover that heralded months of gains.

Price action is also supporting some selling as EUR/USD breaks a trend line support that hasn’t been broken since November.

Selling at current levels and placing stops just above the broken trend line would make for a good trade if you’re convinced that EUR/USD will soon trade a downtrend.

But if last week’s breakout looks fakeout-y to you, then you can also design trading plans around a return to EUR/USD’s uptrend.

NZD/USD Daily Forex Chart

NZD/USD Daily Forex Chart by TradingView

Long-term playas gather ’round!

NZD/USD is testing what looks like the “neckline” of a Double Top pattern on the daily time frame.

The pattern would’ve been interesting enough, but the neckline also showed up at the .6200 psychological level AND is just above the 100 and 200 SMAs on the chart.

Which way will NZD/USD go?

A bearish break below the Double Top “neckline” sets NZD up for a 300ish-pip drop coinciding with the height of the pattern.

On the other hand, Stochastic is chillin’ at its “oversold” area and the 100 SMA looks set for a bullish crossover.

If NZD/USD bounces from the .6200 area of interest, then the pair could revisit the .6400 inflection point or even the .6525 previous highs.

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