Up and at ’em, forex brothas! We’re looking at fine triangle and retracement plays today, so y’all better read up and see if you can make pips off of these!
GBP/AUD has flirted with the 1.8000 handle after breaking below a range support near 1.8200. But have the bears lost their momentum?
The pair looks like it’s making a run back to the 1.8200 previous support. After all, the level is right smack at a 50% Fib retracement on the 4-hour chart. And since stochastic hasn’t hit overbought levels yet, some traders might get bullish enough to push the pound back up to the level.
Think GBP/AUD will pop up by 150 pips to retest the broken range support? Or will we only see shallow retracements before the bears step bacck in? Watch this one closely, fellas!
Guess who’s back, back again? We’ve been playing with NZD/JPY’s long-term descending triangle for a few weeks now, and this time, Kiwi is about to return to the 76.00 major psychological handle.
Stochastic is already flashing an oversold signal, so you can bet pips (with proper risk management, of course) that other bulls are already watching for a possible bounce.
A long trade around the 76.00 handle could get you a good reward-to-risk ratio especially if you aim for the areas of interest near 78.00 – 79.00. If you’re one of them yen bulls or Kiwi bears, though, then you could also wait for a break below 76.00 and trade a downside breakout instead.
Whichever bias you choose, make sure you use wide stops on currency crosses like these, aight?