Can’t decide if you’re trading the majors or comdoll crosses today? Either way, I got you covered with these long-term setups on GBP/USD and AUD/NZD!
I spy with my little eye a trend trade that might just get extended for another day! A couple of days back we identified a possible channel support play on Cable’s daily time frame.
Well, it looks like the bulls are still holding their fort! The pair seems to have found support at the 1.2900 major psychological handle, which is not only near the channel support but also the 100 SMA on the daily time frame. What’s more, stochastic has also just left oversold territory!
Buying at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs near 1.3250.
If you’re not a fan of the pound, though, then you could also wait for a break below its August lows and trade a downside breakout instead. The 1.2600 area is a good place to start though the 1.2150 support is also lookin’ good as a target area.
Watch this one closely, brothas!
Range playas huddle up! AUD/NZD is flirtin’ with a channel resistance that has been serving as area of interest for the pair since September 2015. What makes this setup more interesting is that stochastic is chillin’ like a villain on the overbought territory.
Shorting at current levels is a good idea especially if you aim for the long-term range support near 1.0350. If you’re not sure of the Aussie’s reversal, though, then you could also wait for a bit of momentum before you jump in.
Whichever bias you choose, make sure you use wide stop losses, aight? After all, currency crosses like these can see volatility like nobody’s business!