Welcome to a brand spankin’ new trading week, brothas! Let’s get you started with these easy peasy short-term setups on EUR/GBP and NZD/CAD. Check it out, yo!
After jumping to the .8950 area, EUR/GBP has since gone down below the .8900 mark. In fact, it’s currently testing the .8875 zone, which is right smack at an area of interest that lines up with a broken falling trend line resistance AND is just above a 38.2% Fib retracement on the 1-hour chart.
With stochastic chillin’ like a villain on oversold territory, you can bet your pips (with proper risk management, of course) that other bulls are already watching this one.
Will the euro see more gains against the pound? Buying at the earliest signs of a bounce could give you a decent reward-to-risk ratio especially if you aim for October’s highs near .9025.
If you’re not feelin’ the love for the euro, though, then you could also wait till the pair breaks below the support area and aim for November’s lows near .8750 instead.
Here’s a nice and simple one for ya! NZD/CAD is lollygagging at the .8825 area, which lines up nicely with a rising channel AND 200 SMA support on the 1-hour time frame.
What makes the setup interesting is that stochastic is currently flashing an oversold signal. Think it will lead to more Kiwi gains against the Loonie?
Buying at current levels could get you decent pips especially if you place your stops just below the channel support and aim for the channel resistance levels near .8925.
But if you’re a Kiwi bear and you’d rather short the comdoll, then you could also wait for the pair to break BELOW its current consolidation and trade a downside breakout instead.
Good luck and good trading, fellas!