It’s Friyay, y’all! Whether you like trading the majors or the currency crosses, I got yo back with these short and swing trade setups on GBP/USD and NZD/CAD. Check it!
First up is a nice and simple trend play on NZD/CAD. As you can see, the pair is flirting with the .8750 handle, which is right smack at a falling channel resistance on the 1-hour time frame.
Stochastic isn’t any help in the middle zone, but the small consolidation around the area of interest could be enough to get some bears interested.
Shorting at current levels could get you a good reward-to-risk ratio especially if you place your stops just above the channel and target the previous lows near .8650.
If you’re one of them Kiwi bulls, though, then you could also wait for a break above the channel and maybe even an SMA crossover before executing your breakout plays. Either way, make sure you practice good risk management in your execution!
Not interested in currency crosses? Here’s a dollar setup for ya! Cable is having trouble trading above the 1.3300 major psychological handle, which isn’t surprising since the level has been serving as resistance for the pair since early September.
Will the resistance hold for another day? Stochastic has just left overbought territory, so y’all might want to pay attention to any bearish momentum that could take the pair down to the 1.3200 area.
Shorting at the level could make for a good trade especially if the pound drops to the 1.3050 range support levels.
As in the NZD/CAD setup above, though, you could also wait for a clean break above 1.3300 and aim for the previous highs above 1.3500 if you think that the pound is set for more gains against the Greenback.