Who’s up for some trend plays on the crosses? I hope you are, because EUR/CAD and AUD/NZD’s short and long-term trends are too good to miss!
Trend playas huddle up! As you can see, AUD/NZD is at the 1.1050 psychological area, which lines up with a 61.8% Fibonacci retracement. What makes the setup more interesting is that the level is also just above the 200 SMA and a rising trend line that hasn’t been broken since late July.
Think the Aussie is in for more gains against Kiwi? Stochastic also on the bulls’ side with an oversold signal, so y’all might want to consider jumping in. You could get a sweet risk ratio if you place your stops below the trend line and aim for previous highs.
Don’t discount a downside break though! A break below said support levels could still drag the pair back to the 1.0950 – 1.1000 areas of interest.
If short-term trends aren’t your thing, then you might want to look at EUR/CAD’s rising channel on the daily time frame. The euro has fallen against Loonie in the past couple of days, enough to drag it to the 1.4750 handle near the SMAs and a channel support that has been solid since February.
And with stochastic about to hit oversold territory, you can bet your pips (with proper risk management, of course) that a lot of bulls are already watching. Can the euro extend its losses?
Euro fans can buy at current levels and aim for a revisit back to the 1.5100 – 1.5250 highs. If you’re not too sure about the euro’s strength, though, then you can also wait for a bit of bullish momentum before jumping in.