Heya, forex playas! Time to start a brand spankin’ new trading week with these hot trend and retracement setups on NZD/USD and GBP/AUD!
A couple of days ago we spotted a potential trend play when GBP/AUD hit a channel resistance that’s also near a 200 SMA and an area of interest.But now that the pair has broken above the pattern, all eyes are on the potential break-and-retest play that GBP/AUD is now presenting. See, it’s now back down to 1.7325 after popping up to a high of 1.7500 a couple of days back.
What makes the level interesting this time is that it’s right smack at a 50% Fib retracement AND an SMA crossover that favors the bulls. Not only that, but stochastic has also hit the oversold territory.
A long trade at current levels would give you about 175 pips if you target the pair’s June highs. But if you think that the pound isn’t done with its downtrend yet, then you could also wait for a trip back down the channel and a bit of momentum before placing your orders.
Now here’s a simple trend play for ya! NZD/USD is about to hit the .7150 psychological handle, which happens to line up with a falling channel resistance that hasn’t been broken since September 2016.
Stochastic is chillin’ like a villain on the oversold territory, so you can bet your pips (with proper risk management, of course) that forex bears are already watching the level for potential short trades.
Think the Kiwi is about to see some losses? Watch this one closely, brothas!