Welcome to the last trading day of the week, brothas! End your week on a strong note with these hot forex trade opportunities on AUD/USD and GBP/NZD!
First up is a nice and simple resistance-turned-support play on AUD/USD. The pair is now lollygagging just under the .7900 handle, which is right smack at a broken channel resistance area.
What makes the “bounce” more interesting is that it’s supported by a 50% Fibonacci retracement as well as the 100 and 200 SMAs on the 1-hour time frame. Oh, and check out stochastic chillin’ like ice cream fillin’ on the oversold area!
A long trade at current levels could get you a good reward-to-risk ratio especially if you aim for the monthly highs near .7975. If you’re one of them Aussie bears, though, then you could also wait for the pair to break below said support levels and aim for the previous lows near .7800.
Here’s one for the range playas out there! GBP/NZD looks like it’s about to bounce from the 1.7650 area, which lines up with the middle of a range that has been holding since late June.
Think the pound is about to bounce against Kiwi? Stochastic is currently sort of on the bulls’ side now that it has just left the oversold territory.
Buying at current levels could still buy you a pip or two (or 200) especially if you go for the range resistance near 1.7850. But if you think the SMAs could limit the bulls’ run, then you could also wait for a break below the mid-range support and short this baby instead.
Anyway, whichever bias you choose, make sure you make good risk management decisions and stick to your trading plan!