It’s all about the currency crosses on today’s canvas, as I bring to you trend and breakout plays on GBP/CHF and AUD/NZD. Check it out, yo!
GBP/CHF is having trouble breaking below the 1.3225 handle, which isn’t surprising since it lines up with a rising channel support on the 1-hour time frame.
What makes the setup even more interesting is that stochastic is poppin’ up higher lows and is completing a bullish divergence signal on the chart. But will the signs lead to a trend continuation for the pound?
Buying at current levels could get you a sweet reward-to-risk ratio especially if you place your stops just below the channel and aim for the previous highs near 1.3450. Just remember to watch out for a possible tug-o-pips around the 1.3315 area of interest!
If you’re not a fan of the pound, though, then you could also wait for a break below the 1.3300 psychological handle before you attempt your shorts. If it ends up clearing the 1.3150 area of interest, then you could aim for the previous lows near 1.3015.
Breakout alert! AUD/NZD has just broken below the 1.1000 psychological handle, which lined up with rising channel support on the 4-hour time frame.
Not all hope is lost for the bulls, though. The 1.0800 level could still serve as support especially since the area of interest lines up with the 200 SMA on the chart. And with stochastic flirting with the oversold territory, you can bet (some of your) pips that the bulls are already watching this one.
Watch this one closely for the earliest sign of bullish momentum, brothas!