I hope you’re in the mood for currency crosses today, because we’re looking at sweet forex trade opportunities on GBP/AUD and EUR/NZD. Get ’em while they’re hot!
The pound shot up like there was no tomorrow yesterday, which brought GBP/AUD a bajillion (ok, more like 300) pips up to 1.7800.
What makes the pop interesting is that it stopped right around the 1.7850 mark, which lines up with a falling channel resistance that hasn’t been broken since mid-2017.
Think the pound will see losses against the Aussie? Shorting at current levels is a good idea if you’re not convinced that the rally will hold.
If you’re one of them pound bulls, however, then you could also wait for a break above the channel and the trade an upside breakout instead.
Resistance alert! EUR/NZD is poppin’ dojis at the 1.7450 psychological level, which is right smack at a technical resistance that has been solid since late last year.
A break above the level could push the pair to its September 2015 highs near 1.7900. Meanwhile, a rejection at the resistance could drag it back down to the 1.7100 previous area of interest.
Which way will EUR/NZD go? Watch this one closely and make sure you got yo trading plans ready for any and all scenarios!