Who’s up for trading comdoll crosses today? I hope you are, because I’ve got hot trend setups on GBP/AUD and NZD/CHF!
After breaking below a falling channel last week, you would think that GBP/AUD is done with the pattern. I guess the bears have other ideas!
Right now the pair is back at the 1.6900 psychological area, which is right smack at the channel support it had broken last week. What makes the retest more interesting is that it also lines up with a falling trend line resistance AND a 100 SMA retest on the 1-hour time frame.
Think the pound is about to weaken some more against the Aussie? Shorting at current levels is a good play if you think that the pair will continue to make new lows this month. But if the pair actually breaks higher, then the 1.7000 – 1.7100 handles are your best bets as the next possible resistance levels.
Breakout alert! NZD/CHF is currently trading juuust above the falling channel resistance on the daily time frame!What’s interesting about the current consolidation is that it lines up with the first 100 SMA test after crossing below the 200 SMA. What’s more, it’s right at the .7000 area of interest that has served as support and resistance in the past.
A break above the psychological handle could lead to a move back to the 2017 highs near .7300. But if Kiwi traders choose to pay attention to the overbought stochastic signal and trade the downtrend, then we could be looking at fakeout that would lead to a drop back down to the .6750 lows seen in May.
What do you think? Are we looking at a legit breakout? Or is this just a fakeout?