Who’s in the mood to trade currency crosses? I hope you are, because these support and resistance plays on GBP/AUD and EUR/CAD are too good to miss!
First up is a nice and simple S&R setup for EUR/CAD. As you can see, the pair encountered support at the 1.4500 major psychological handle, which isn’t surprising since it lines up with a previous area of interest AND a rising trend line support on the daily time frame. Oh, and look at stochastic chillin’ like a villain on the oversold region!
Buying at current levels could get you a decent reward-to-risk ratio especially if you place your stops just below the trend line and aim for the previous highs near the 1.5000 psychological mark.
Just make sure y’all place wide stops, aight? After all, currency crosses like these tend to see more volatility than your average forex pair!
Here’s another nice and simple trade for ya! GBP/AUD just hit the 1.7000 major psychological level, which is right smack at a mid-channel resistance on the daily time frame.
With stochastic hitting overbought levels, you can bet your pips (with proper risk management, of course) that other forex traders are also watching.
You can place a small long position at the earliest signs of trend continuation if you’re one of them trend warriors who believe that the pound will hit its previous resistance area near 1.7700.
If you’re one of them countertrend traders, though, then you can also wait for a bit of bearish momentum before shorting the pair all the way to its 1.6200 support levels.