What’s better than a currency cross setup? That’s right, TWO currency cross trades. I’m servin’ up two short-term forex setups on AUD/JPY and EUR/NZD, yo. Get ’em while they’re hot!
First up is a nice and simple trend play on AUD/JPY. As you can see, the pair is back to retesting a falling trend line which has been holding as resistance since the start of February.
What makes the setup more interesting is that the trend line is also near the 200 SMA on the 1-hour chart. Oh, and check out stochastic just landing in overbought territory!
Will the trend line hold for another day today? Or will the bulls finally have enough muscle in their hustle to break above the trend line?
A short trade at current levels could get you a good reward-to-risk ratio especially if you aim for the previous lows near 81.50. If you’re one of them Aussie bulls, though, then you might want to wait for the pair to clear the 83.50 previous support before you put on your buy orders.
I spy with my cool, blue eyes a triangle breakout in the making! See, EUR/NZD has been poppin’ up higher lows that coincide with the 100 SMA support. Unfortunately for the bulls, the bears have no chill around the 1.7080 handle.
Who will win the tug-o-pips at the next retest? A break below the trend line and the SMA could drag the pair to its previous area of interest near 1.6940 and 1.6800.
On the other hand, an upside breakout could push the euro to the 1.7150 or even the 1.7400 handles.
Whichever direction you choose to trade, make sure y’all have your trading plans locked tight before you place your orders, aight?