Can you believe we’re already into the middle of the month? Get over the mid-week (and mid-month) hump by checkin’ out these hot long-term setups on EUR/USD and AUD/CAD!
EUR/USD just bounced from the 1.1600 major psychological area, which isn’t surprising since the level lines up with the 100 SMA and is just above a 38.2% Fib retracement on the daily chart.
Question is, will the bounce lead to a retest of the previous highs? Buying at current levels could still get you a pip or two (or hundreds) especially if you aim for the 1.2100 handle.
Stochastic has already left oversold territory, though, so y’all might want to watch this one closely for the earliest signs of trend exhaustion if you do end up taking long trades.
If you’re no fan of the euro, though, then you could also wait for the pair to bounce lower from previous resistance areas. Maybe somewhere near the head and shoulders levels from a month back?
Remember that downtrend that we were looking at a few days back? Well, it looks like Aussie bears paid attention after all!
AUD/CAD is now chillin’ like a villain around the .9700 psychological handle, which lines up with a mid-channel support on the daily time frame. What’s more, stochastic has already hit oversold territory!
Countertrend trading isn’t for everyone, though, so make sure you have enough psychological stamina to trade against a trend if you decide to jump in on this one.
The .9800 – .9900 area is a good profit target if you think that the Aussie would get its pips back from the Loonie. If you’re more of a trend trader, though, then you could also wait for the pair to break its current support and aim for new monthly lows.