Welcome to a brand spankin’ new trading week, forex brothas! I’m serving up neat trend and range plays on EUR/AUD and USD/CAD for ya today. Ready to get some pips? Check these out!
Support alert! As you can see, EUR/AUD is having trouble breaking below the 1.5600 major psychological handle, which isn’t surprising since it lines up with a rising channel support AND the 200 SMA on the 1-hour time frame.
What makes the setup even more interesting is that stochastic is also chillin’ like a villain near oversold territory. Think these all point to more gains for the euro?
Buying at current levels would get you a good reward-to-risk ratio especially if you aim for the previous highs 100 pips away and place your stops just below the support levels we’ve identified.
Don’t tighten your stops too much, though, as currency crosses like these tend to see more volatility than the majors!
Here’s one for the range playas out there! USD/CAD saw a yuuuuuuuge drop at the end of last week, which put the pair at hair’s breadth away from 1.2680 range support on the 4-hour time frame.
With stochastic flirtin’ with the oversold territory, you can bet your bitcoins that other dollar bulls are already watching this one.
As in the setup above, buying at current levels would give you a nice reward-to-risk ratio especially if the pair pops up its previous resistance near 1.2900.
If you’re one of them dollar bears, though, then you could also wait for the pair to convincingly trade below the 1.2680 mark before you start your breakout plays.
Either way, make sure you practice tight risk management practices when you do execute your trades!