It’s all about the comdolls today, as I bring to you forex trade opportunities on AUD/USD and NZD/USD. Check it!
First up is a nice and simple break and retest play on AUD/USD. The pair has dipped by about 100 pips since it hit .7525 after breaking above a falling channel.
Will the bulls fight for their cause around the current levels? As you can see, the .7425 area lines up with not only the broken channel resistance, but also the 50% Fib retracement AND the 100 SMA on the 4-hour time frame.
You might want to wait for a bit of momentum if you’re planning on buying the Aussie this week, though you might also want to watch out for a possible return to a downtrend. Watch out for any signs that the Aussie is headed back to its May lows near .7325!
NZD/USD is on a short-term uptrend, yo! As you can see, the pair is currently a few pips away from a sweet channel support near .7025.
However, the Kiwi is having trouble dropping below .7040, likely because the level has been an area of interest back in mid-April. What’s more, the 100 SMA is right smack at the area and are discouraging the bears! The cherry on top of the bullish sundae is an oversold stochastic signal.
Buying at current levels could still get you a good reward-to-risk ratio especially if you think that the Kiwi is headed for new monthly highs against the dollar. But if you’re one of them conservative traders, then you could also wait for the pair to drop to the channel support closer to .7020 before entering your orders.