Up and at ’em, forex brothas! Let’s start a brand spankin’ new trading week with these hot trend plays on NZD/JPY and GBP/AUD!
First up is a nice and simple downtrend play on GBP/AUD. As you can see, the pair is consolidating around the 1.6450 minor psychological area, which is right smack at a falling trend line retest, 38.2% Fib retracement, AND the 100 SMA on the 1-hour time frame. Wowza!
It doesn’t look like the bulls and bears have picked a direction just yet, but a continuation of the bearish momentum could take the pair back to its previous lows near 1.6300, if not new 2017 lows.
Of course, the pound could always buck the trend and pop above the falling trend lime that we’re watching. In this case, look out for a break above the 1.6600 area of interest near the 61.8% Fib and 200 SMA for signs that the bulls have taken over.
In any case, make sure y’all have your trend strategies ready for when this baby starts favoring a direction!
Can’t get enough of trends? This one’s for ya! NZD/JPY is lollygagging around the 82.50 area, which isn’t surprising since it lines up with a 61.8% Fib retracement, rising trend line, AND SMA support levels on the 1-hour time frame.
Stochastic is currently flirting with an oversold signal, so you can bet your pips (with proper risk management, of course) that Kiwi bulls are watching this one closely.
A bounce above current levels could take the pair all the way to its previous highs near 83.00, while a break below the trend line could drag it back to the broken falling channel pattern and push for a retest of 81.50.
Which way do you think the pair will go? Will it go back down to its downtrend? Or is it ready for an uptrend?