I hope you’re in the mood to trade currency crosses because these forex trade opportunities on EUR/JPY and AUD/NZD are too good to miss. Check ’em out!
EUR/JPY is encountering strong resistance at the 131.00 major psychological handle, which isn’t surprising since the area lines up with a falling trend line AND a 200 SMA retest on the daily time frame.
With stochastic forming a potential bearish divergence, you can bet your pips that forex bears are already watching this one.
A short trade at the earliest signs of bearish momentum could give you a good reward-to-risk ratio especially if you aim for the previous lows near 125.50.
Just make sure you use wide stops! Currency crosses like these see volatility like there’s no tomorrow, so y’all might see some crazy moves before the pair hits your targets.
AUD/NZD is chillin’ like a villain just below the 1.0900 major psychological handle, which is right smack at a channel support and 100 SMA retest on the daily chart.
Think the Aussie is about to extend its gains on the Kiwi? Buying at current levels could get you decent pips especially if you place your stops just below the 200 SMA.
If you’re one of them Aussie bears or Kiwi bulls, however, then you could also wait until the Aussie breaks well below the channel and then maybe you can target the previous lows near 1.0700.
Whichever bias you choose to trade, make sure you’re practicing good risk management, aight?