Hump Day schwump day. Get over your mid-week blues with a hot break-and-retest on GBP/AUD and a make-or-break situation on NZD/JPY. Check out these forex trade setups!
Remember that GBP/AUD downtrend that we spotted earlier this week? Well, it looks like forex playas were more interested in buying the pound!
The pair is now lollygagging around the 1.6650 area, which lines up with the broken channel resistance that we looked at. Not only that, but the 100 and 200 SMAs are also just below the minor psychological handle!
Are we looking at a bounce in the making? Buying at current levels could get you a good reward-to-risk ratio especially if you think the pound is in for a reversal against the Aussie.
But if you’re not convinced that the downtrend is over and that the last breakout is actually a fakeout, then you could also wait for the pound to go back to the falling channel and use your trend-trading strategies in your favor.
Whichever bias you choose to trade, make sure you make good risk management decisions when you do execute them, aight?
Breakout alert! As you can see, NZD/JPY looks like it’s juuuust about to break below an ascending triangle on the daily time frame.
The 78.00 handle is the area to watch, as a convincing close below the psychological level could mean that the bulls have run out of ammo to defend the support.
Think Kiwi will soon see more losses against the yen? A downside breakout could drag the pair to the 76.00 or even 73.00 support levels if it gains enough momentum.
If you’re one of them Kiwi bulls, though, then you could hold off until you see the earliest signs of a bounce and then aim for the triangle resistance near 83.50. Just make sure you place wide stops, aight? Remember that yen crosses like these tend to be more volatile than the majors!