It’s February 14 and you know what that means – time to look at two (currency) pairs that will give us sweet pips! Check out AUD/USD’s uptrend and EUR/GBP’s range and see if you can make pips from them!
Resistance alert! As you can see, EUR/GBP is knocking on the .8900 major psychological handle, which is right smack at a range resistance that hasn’t been broken since late November.
With stochastic chillin’ in overbought territory, you can bet your pips that other bears are watching this one too. But will the bears have enough muscle in their hustle to defend the range resistance for another day? Or will the bulls finally push for an upside breakout?
A short trade at the earliest signs of downside pressure could get you as much as 200 pips if you target the range support near .8700. But if you’re one of them euro bulls, then you might want to pay attention to the previous resistance areas near .9000.
Whichever bias you choose to trade, make sure y’all practice good risk management decisions, aight?
Remember that mid-channel play that we spotted almost a week ago? Well, it looks like the bulls are paying attention! The pair looks like it’s gaining momentum after bouncing from the 61.8% Fibonacci retracement near the 100 and 200 SMAs.
The .8150 previous resistance area is a good level to target if you’re planning on jumping on the uptrend.
If you think that the Aussie isn’t done losing pips against the dollar, however, then you could also wait for a break below the mid-channel line and aim for the previous support area near .7500.
Don’t forget to keep your stops wide when trading higher time frames such as this one!