Welcome to the last trading day of the week, brothas! End your trading on a high note with these breakout and retracement plays on AUD/USD and GBP/NZD!
GBP/NZD broke below a tight range earlier this week, but encountered support around the 1.7550 area. But wait, there’s more!
The pair is now chillin’ below the 1.7700 major psychological handle, which is right at the range support that it had broken. Oh, and have I mentioned that it also lines up with a 38.2% Fib retracement and a falling trend line resistance on the 1-hour time frame?
Stochastic hasn’t quite reached the overbought region, so you could still have time to whip up your trading plan if you’re planning on shorting this one.
A bearish momentum could take it back down to its previous lows, while a break above said resistance levels could push it back up to the range resistance near 1.7850.
But now the pair is trading just below .7750 and the bulls and bears are back in play. Will the bulls sustain their momentum and push for a clean break? Or will the bears fight back and force a fakeout that would take the pair back down to the .7750 – .7600 levels?
Watch this one closely, homies!