Welcome to Wednesday, forex brothas! Get over the mid-week hump with these swing and long-term uptrend setups on AUD/USD and EUR/NZD!
First up is a nice and simple channel on AUD/USD. The Aussie is currently lollygagging around the .7875 – .7880 area, which is right smack at a rising channel support on the 4-hour time frame. What makes the setup even more interesting is the bullish divergence on the chart.
Is the Aussie due for a bounce? Buying at current levels could get you a sweet reward-to-risk ratio especially if you place your stops just below the channel and aim for the top of the channel above .8050.
If you’re no fan of the Aussie, though then you could also wait for the pair to break lower and trade a downside breakout instead. Whichever direction you support, make sure you y’all practice good risk management decisions when you execute your trades, aight?
Somebody holler at Happy Pip because EUR/NZD is poppin’! The pair just bounced from the 1.6200 mid-channel support near the 38.2% Fib and it looks like it’s headed for its previous highs near 1.6650.
Stochastic has almost (but not quite) reached oversold status, so there might be enough bullish pressure to push the pair higher. Buying at current levels could still get you a sweet deal especially if you think that the euro would head for new highs.
Meanwhile, the more conservative traders can wait for a bit of bullish momentum before jumping in. In any case, make sure you place wide stops when trading currency crosses like these!