Another month means another opportunity to make pips! Check out GBP/AUD’s downtrend and NZD/USD’s uptrend on the 1-hour forex charts.
Remember that channel support + area of interest + 100 SMA combo that we spotted a couple of days back? Well, looks like the bulls went for it! Since then the pair has rocketed by about 80 pips to 0.7120.
If you think that you missed the boat, then you should know that the pair is now chillin’ just above the .7050 minor psychological area.
What makes the level interesting is that it lines up with a rising channel AND a 100 SMA retest on the 1-hour time frame. Oh, and if you squish your charts a bit more, you’ll see that the level had also served as are of interest in late March.
Will the bulls take charge again? The bears are making a run for it right now, but watch out for long wicks and the earliest signs of a bounce!
If dollar-trading isn’t your thing, then this one is for you. GBP/AUD is having trouble breaking above the 1.7350 mark, which isn’t surprising since it lines up with a falling channel resistance.
But wait, there’s more! If you squeeze your charts a bit, you can see that the level marks the first retest of a broken rising trend line that had been solid since mid-March. What’s more, it’s also right around the 200 SMA on the 1-hour chart!
Shorting at current levels is a good idea if you think that the pound will extend its downtrend and if you’re one of them aggressive traders. The pair is about 200 pips away from its weekly lows, after all.
If you think that the pound is headed higher, though, then you could also wait for a trip back above the rising trend line. A long trade just above 1.7400 could still get you a decent reward-to-risk ratio if you target the monthly highs near .7650.
In any case, make sure you use wide stops and practice good risk management when trading currency crosses like these!