New week, new chance to bag some pips! Hit the ground running with these short-term setups on EUR/USD and GBP/NZD!
Remember that uptrend we’ve spotted a couple of days back? Well, it looks like the bears took a chance at forcing a downside breakout of a rising channel last Friday!
EUR/USD is now trading around the 1.1800 major psychological area, which means that the bears haven’t quite breached the 200 SMA just yet. What’s more, stochastic has just popped out of the oversold territory!
Think the euro will reclaim its uptrend? A long trade at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs.
But if you think that EUR/USD is about to see a reversal, then you could also short at the earliest signs of downside momentum. Keep an eye out for the 1.1825 area of interest as well as the previous support near 1.1625.
Here’s one for range playas out there! GBP/NZD is lollygagging near 1.7615, which is right smack at a mid-range support on the 1-hour time frame.
A bounce from current levels could take the pair all the way to its 1.7850 range resistance. Stochastic has already left the oversold region, though, so there might be less pressure to push the pair higher.
If you’re one of them pound bears, then you could also wait for the pair to break its Friday lows and aim for the range support area near 1.7400. Whichever bias you have, make sure you practice good risk management when executing your trades!