Can you believe we’re already into the middle of the week? Get over the mid-week hump by takin’ advantage of these short and long-term forex trade opportunities on EUR/USD and GBP/NZD!
Somebody holler at Huck because this downtrend play is too good to miss! EUR/USD is having trouble breaking above the 1.1200 psychological handle, which isn’t surprising since the level lines up with a descending channel resistance on the 1-hour chart.
Oh, and as you can see, the 100 SMA has also just crossed below the 200 SMA. According to the School of Pipsology, that’s a change in trend, yo!
You could get about 70 pips if you short at current levels and target the pair’s weekly lows for profit. But if you’re not convinced of the euro’s uptrend, then you could also wait for a break above the descending channel before placing your long trades. Either way, make sure you use proper risk management when handling your orders!
Here’s one for longer-term traders out there! GBP/NZD has fallen by about 780 pips since encountering resistance at 1.8800 earlier this month. That’s a lot of movement!
Will the bears finally run out of steam? The 1.7800 is a good area to watch, as it’s right smack at an area of interest from all the way back in May 2016.
What’s more, the level is right around an SMA crossover AND the bottom of an ascending channel on the daily chart. And look at stochastic chillin’ like a villain on the oversold territory!
Conservative traders can wait for the pound to hit the support area that we’re watching and wait for momentum before entering a long trade near the bottom of the channel. But if you’re one of them aggressive countertrend playas, then you could also get a piece of the pound’s selloff and take profits until you see signs of reversal.