I’m serving up a hot trend opportunity on AUD/NZD and a potential range play on EUR/GBP today. Get ’em while they’re hot!
First up is a nice and simple range play on EUR/GBP. The pair is having a hard time finding direction around the .8725 – .8750 area, which isn’t surprising since the level is right smack at a range resistance that’s been solid since the start of the year.
And now the bears are steppin’ up their game and a bearish divergence seems to be forming on the daily chart with higher price highs and lower highs from stochastic.
A bounce from the resistance could drag the pair back down to .8550 or even the .8350 range support. Meanwhile, a clear break above the .8775 area could mean that the bulls have been re-energized and possibly push EUR/GBP to the .9000 levels. Watch this one closely, will ya?
Here’s one for trend playas out there! AUD/NZD looks like it’s about to bounce from the 1.0400 major psychological handle, a level that lines up with an ascending channel that hasn’t been broken since September 2016.A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for the year’s highs around the 1.1000 levels.
You might want to wait for a bit of momentum, though. After all, the pair could always see more downside pressure and maybe even break the channel that we’re looking at. Make sure you have your breakout strategies with you in case that happens!