It’s Friyay, y’all! Check out these this downtrend on GBP/USD and a mid-channel support opportunity on AUD/NZD that just might get you your last-minute pips this week!
Cable is about to pop above the 1.3550 psychological handle, which lines up with a falling channel resistance on the 1-hour chart. What makes the setup more interesting is that the 100 SMA has also just crossed below the 200 SMA. Oh, and look at stochastic chillin’ like a villain on the overbought territory!
Shorting at current levels could yield you a good reward-to-risk ratio especially if you aim for yesterday’s lows near 1.3450. Be careful of an upside breakout, though, as the pair could always trade above 1.3550 and revisit its monthly highs near 1.3600!
AUD/NZD is headed fast for the 1.0650 area, which lines up nicely with a mid-channel support on the daily time frame. Y’all can bet that Aussie bulls and bears are watching this one especially since price is near the 200 SMA while stochastic has hit the oversold region.
Will the mid-channel line be enough to support the Aussie? A long trade at the earliest signs of a bounce is a good idea if you’re one of them bulls who believe that AUD will go back to its 1.1250 previous highs.
If you’re not too sold on an Aussie rally, though, then you could also short the comdoll against Kiwi at the earliest signs of a break below the support levels we’re watching.
Whichever bias you choose to trade, make sure you use wide stops and practice good risk management, aight?