If you like trading simple support and resistance plays, I got yo back with these short and swing trade opportunities on EUR/USD and AUD/NZD. Check ’em out!
After finding support at the 1.0750 handle, AUD/NZD has popped up by about 100 pips and it looks like it’s on its way to the moon. Or not.
As you can see, the 1.0870 level can give the bulls a run for their money, as it has served as a pretty solid support from early December to early February. Not only that, but stochastic is also about to hit overbought status!
The Aussie has a couple more pips to go before reaching the previous support area, so y’all still have time to whip up your trading plans if you’re planning on trading this one.
You could wait for a consolidation or a couple of bearish candlesticks or you can wait for the pair to make new lows to confirm a bearish momentum.
Whichever strategy you choose, make sure you practice good risk management decisions when you execute your plans!
Here’s one for the trend riders out there! EUR/USD is having trouble breaking below the 1.2270 area, which isn’t surprising since it lines up with not only consolidation back in mid-January, but also the top of a channel that had been broken earlier this year.
What makes the setup more interesting is that there’s a bullish divergence on the 4-hour chart. But will this lead to more gains for the euro?
Buying at current levels could get you a good reward-to-risk ratio if you place your stops just below the channel resistance and the pair ends up making new 2018 highs.
If you’re not a fan of the euro, though, then you could also wait for the pair to break below our resistance area and look for a deeper retracement or maybe even a break below January’s lows before putting on your shorts.