Whether you like trading short or long-term charts, I got yo back with these trend plays on EUR/USD and NZD/USD. Check ’em while they’re hot!
Remember that support-turned-resistance play that we spotted earlier this week? Well, it looks like the bears paid attention! Not only that, but it also looks like they’re pushing for more downside momentum.
EUR/USD is currently having trouble breaking below the 1.1750 minor psychological handle, which isn’t surprising since it lines up with a falling channel resistance on the 1-hour time frame. Of course, it also doesn’t hurt that the 100 SMA has just crossed below the 200 SMA just as stochastic hit the overbought territory.
Shorting at current levels could get you a pip or two (or a hundred) especially if you aim for the previous area of interest around 1.1650. If you’re not convinced that the euro is headed for a downtrend, though, then you could also wait for a convincing break above 1.1750 and aim for its previous highs near 1.1900.
In any case, make sure you practice your tight risk management skills when you execute your trades!
Here’s a nice and simple trend play for ya! NZD/USD has just sported what looks like a hammer on the daily chart.
What makes the setup more interesting is that it popped up right when the pair is testing a long-term rising trend line, 61.8% Fibonacci retracement, AND a major area of interest. The cherry on top of the sweet setup is stochastic almost hitting the oversold area.
Think Kiwi is about to gain against the scrilla in the next couple of days? Buying at the earliest signs of bullish momentum could get you a good reward-to-risk ratio especially if you place your stops just below the trend line and aim for previous highs.
Longer-term trades like these could see some pretty serious volatility, though, so make sure y’all have wide stops when trading setups like these!