Who’s ready to trade currency crosses? I hope you are, because I’ve got hot trend plays on GBP/JPY and AUD/NZD that you wouldn’t want to miss!
First up is a nice and simple downtrend on GBP/JPY. The pair is lollygagging just below the 149.50 handle, which is right around the falling channel and 200 SMA resistance on the 1-hour time frame.
With stochastic hitting overbought territory, you can bet your pips (with proper risk management, of course) that other bears are already watching this one.
Shorting at the 149.00 – 149.50 area could give you a good reward-to-risk ratio especially if you aim for the previous lows near 148.00. If you’re no fan of the pound, though, then you could also wait for a break above said resistance levels and aim for the 151.50 area.
Here’s one for the comdoll playas out there! AUD/NZD is finding support at the 1.1050 levels, which isn’t surprising since it lines up with the rising channel resistance on the 1-hour chart.
Like in the setup above, stochastic is flashing extreme levels on this one. Buying at the earliest signs of a bounce could make for a good trade especially if you aim for the previous highs near 1.1300.
Just make sure you place wide stops on this one, aight? Currency crosses tend to see more volatility than the majors, after all!