We’re all about the comdolls today with a short-term trend on AUD/USD and a possible retracement on NZD/USD. Check this out, brothas!
AUD/USD is having trouble finding momentum above the .7900 major psychological handle, which isn’t surprising since it’s around a falling channel resistance that has formed on the 1-hour time frame.
Stochastic has already left the overbought region, but you could still get a sweet risk ratio if Aussie bears decide to target the weekly lows. If you’re into buying the Aussie these days, though, then you could also wait for the pair to break above the channel and aim for the highs near .7950. Watch this one closely, homies!
NZD/USD might have broken below the head and shoulders pattern that we spotted earlier, but it’s also about to hit the .7150 – .7200 areas of interest so y’all better start paying attention!
As you can see, the area is also right smack at a 50% Fibonacci retracement as well as the SMAs on the daily chart. Not only that, but a small bullish divergence has also popped up to entice the bulls.
Buying at the .7150 area is a good bet if you think that Kiwi will find support at the area before rising to its .7500 highs.
But if you think that the bears will have enough muscle in their hustle to drag the pair back down to .6800, then you might want to wait for a break below said support levels before you place your shorts. Either way, make sure you practice good risk management when executing your trading plans!