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I’ve got trend pullback setups on a couple of Kiwi pairs, plus a potential breakout play on Disney shares.
Will we see a continuation of these long-term moves?
Take a look at these levels I’m watching this week.
EUR/NZD Daily Forex Chart
First up is this ascending channel setup lookin’ fresh on the daily time frame!
EUR/NZD has formed higher highs and higher lows, and it looks like another dip to the channel support is in the works.
The handy-dandy Fib tool shows that this lines up with the 61.8% retracement level around the 1.6500 handle and the 200 SMA dynamic inflection point.
Moving averages are pointing to a continuation of the climb, as the 100 SMA is safely above the 200 SMA. Plus, Stochastic is already pulling higher from the oversold region to show that buyers are returning.
In that case, the 38.2% Fib that’s right smack in line with the mid-channel area of interest around 1.6900-1.7000 might be enough to keep losses in check.
Better be ready to catch a move back to the swing high or channel top soon!
NZD/USD Daily Forex Chart
Now this one has been cruising lower with lower highs connected by a falling trend line that’s been holding since April.
Another test of this resistance area is taking place, and technical indicators are hinting at a continuation of the slide.
For one, the 100 SMA is below the 200 SMA to confirm that the path of least resistance is to the downside. Stochastic is also indicating overbought conditions or exhaustion among buyers, so sellers might regain the upper hand.
I’d look out for reversal candlesticks forming around the 61.8% Fib, which happens to coincide with the trend line and former support around the .6100 handle.
If Kiwi bulls manage to charge past this barrier, though, a reversal from the downtrend might follow.
Walt Disney Company (DIS): Daily
Walt Disney Company (DIS) Daily Chart
Don’t look now, but Disney shares seem to be breaking out of their consolidation pattern!
The stock price has formed lower highs and found support around $92, creating a descending triangle formation on its daily time frame.
DIS gapped down over the weekend to signal that sellers are eager to jump back in action, possibly leading to a selloff that’s at least the same height as the chart pattern.
However, technical indicators are looking mixed. The 100 SMA is below the 200 SMA to indicate that support is more likely to break than to hold, but Stochastic is suggesting otherwise.
Apart from starting to bottom out from the oversold area, the oscillator is also showing a bullish divergence with its higher lows while price made lower lows.
Look out for the bearish gap getting filled to gauge if buyers are keen on keeping Disney shares above $100.
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