Up and at ’em, forex brothas! Let’s get you some pips with these swing trade opportunities on USD/CAD and GBP/NZD. Which one of these would you most likely trade?
Remember that range support play that we were looking at earlier this week? Well, it looks like it would have worked well if you had traded it!
But now USD/CAD is having trouble breaking above the 1.2800 major psychological level, which isn’t surprising since it lines up with the mid-range level that we marked earlier. What makes the setup even more interesting is that stochastic has also hit overbought territory.
Will dollar bears manage to defend the level? Or will the bulls have enough muscle in their hustle to extend the bullish move all the way to the range resistance near the 1.2900 MaPs?
Watch this one closely, brothas!
Here’s one for all you trend playas out there! GBP/NZD looks like it’s bouncing from the 1.9400 major psychological handle, which is right smack at the trend line retest, 61.8% Fib retracement, AND the 100 SMA on the 4-hour chart. Oh, and are you seeing the bullish divergence that I’m seeing, too? Talk about a triple treat!
Buying at current levels could give you a good reward-to-risk ratio especially if you aim for the previous highs near 1.9800 and place your stops just below the trend line. Don’t place your stops too close to your entry, though, as currency crosses like these tend to see volatility like nobody’s business!