I spy with my cool, bedroom eyes a sweet trend opportunity! See, AUD/NZD is testing the 1.0825 levels, which is right smack at a rising channel AND 200 SMA support on the 4-hour time frame.
What makes the setup even sweeter is that stochastic is chillin’ like a villain on the oversold territory. Will the Aussie shoot back up against the Kiwi?
Buying at current levels could get you a good reward-to-risk ratio especially if you aim for the previous highs around 1.0100. However, you might also watch out for the 1.0900 MaPs or the 1.0950 mid-channel resistance, as Aussie bears and Kiwi bulls might lurk around the areas.
In any case, make sure you practice good risk management habits to minimize your losses and maximize your gains (no, not the kind you see at the gym).
Remember that downtrend play that we spotted yesterday? Well, it looks like it worked out pretty well! But for those who are still holding their shorts, you might want to see this.
NZD/JPY is about to hit the 77.00 major psychological handle, which not only lines up with a 61.8% Fib but also a major area of interest on the daily time frame. That’s two “majors” for you!
If you look further, you’ll see that the 77.00 area is also near the 200 SMA. Pretty convenient, if you consider the bullish divergence on the chart.
Buying at the 77.00 area could get you sweet pips especially if it bounces back up to its January highs. However, keep in mind that we’re dealing with the daily chart here and that it can be choppy around the 77.00 area before the pair chooses a direction.