Let’s keep the Aussie party rolling with these long-term trend and breakout plays on GBP/AUD and AUD/NZD. Holler if you think you can make pips from these setups!
GBP/AUD is lollygagging around the 1.7250 psychological handle, which isn’t surprising since it lines up with a mid-channel support that has been an area of interest since September 2016.
With stochastic hanging in oversold territory, you can bet your pips (with proper risk management, of course) that other traders are already bracing for a bounce.
Will the pound catch a bullish momentum against the Aussie? The 1.7700 and 1.7900 areas are potential profit targets if you think that the pound will bounce higher. On the other hand, y’all gotta watch out for the 1.7050 or even the 1.6500 levels if the pair breaks below the mid-channel line.
I spy with my cool, shaded eyes a support-turned-resistance opportunity! After breaking below a rising channel in early December, AUD/NZD is now trading juuust below the channel support.
What makes the setup more interesting is that it also lines up with the 100 SMA while stochastic is chillin’ like a villain in the overbought region.
If the pair sustains its bearish momentum, then we could be looking at a move to the 1.0875 previous support or even the 1.0750 area of interest. What do you think? Will we see the Aussie dip against Kiwi over the next couple of days?