Welcome to a brand spankin’ new trading month, brothas! Hit the ground running with these simple trend and retracement trades on GBP/NZD and AUD/CAD!
GBP/NZD is having trouble breaking above the 1.9250 area, which isn’t surprising since it lines up with the top of a falling channel that’s also near a previous resistance AND the 100 SMA on the 1-hour chart.
With stochastic in overbought territory, you can bet your pips (with proper risk management, of course) that other traders are already watching this one.
A short trade at current levels could get you a good reward-to-risk ratio especially if you aim for the previous lows near .1.9050. If you’re a pound fan, though, then you could also wait for a clear break above 1.9250 and aim fro the previous highs near 1.9450.
Whichever bias you choose to trade, make sure you practice good risk management when executing, aight?
Here’s another one for trend surfers out there! AUD/CAD is fast approaching the .9880 area, which lines up with not only the 38.2% – 50.0% Fib retracements but also a previous resistance that held forex bears at bay between September 2017 to early January.
Like the setup above, stochastic is also currently sitting in the oversold region. But wait! Take note that the pair has yet to see reversal candlesticks or bullish momentum. That means y’all still have time to whip up your trading plans, yo!
Will AUD/CAD find support at the .9880 support? Or will it drop back down to the 200 SMA or even the bottom of the rising channel before seeing buying pressure?