Whether you like trading short or long-term forex setups, I got yo back with these hot reversal setups on EUR/USD and AUD/USD. Check them out, yo!
After trading on a downtrend for most of May, EUR/USD looks like it’s ready for a change.
As you can see, the pair has broken above a falling trend line that has been valid for most of last month. And in this case, the setup is supported by the 100 SMA crossing below the 200 SMA area.
Will the euro gain pips on the dollar this month? Buying at the earliest signs of bullish momentum could give you a decent reward-to-risk ratio especially if the common currency ends up retesting its previous highs near 1.2000.
If you’re not a fan of the euro, though, then you could also wait for the pair to make new 2018 lows and trade a possible downtrend continuation.
Whichever bias you’re trading, make sure you practice good risk management habits when you execute your trades!
Here’s one for dollar fans out there! AUD/USD just hit the .7650 area, which is right smack at a previous channel support on the daily time frame.
Are we looking at a support-turned-resistance situation over here? Stochastic is chillin’ like ice cream fillin’ in the oversold territory and is sporting a slight divergence, so you can bet (some of) your pips that other bears are already watching this one.
Shorting the pair could get you a pip or two (or fifty) especially if you aim for the previous lows. However, if you think that we’re just seeing a fakeout and that the Aussie will actually extend its long-term uptrend, then you could also wait until the pair goes back to the rising channel and trade an uptrend instead.
Good luck and good trading, brothas!