Who’s up for trading currency crosses today? I hope you are, because these setups on GBP/NZD and EUR/CAD are too good to miss. Check them out!
GBP/NZD broke above a range that had been solid for most of 2018, but now the pair is back to the previous range resistance level.
Are we seeing a resistance-turned-support situation here? GBP/NZD is now about 100 pips from the 1.9600 psychological handle, but you can still make tons of pips if you follow the momentum all the way to the 1.2000 previous highs.
If you believe that we’re seeing a fakeout, however, then you could also wait for the pair to close below 1.9600 and trade a possible move back down to the 1.8950 range support.
Here’s one for trend playas out there! EUR/CAD just encountered resistance at the 1.5300 psychological handle, which is near the 100 SMA and previous trend line support on the daily time frame.
Selling at current levels is a good idea if you think that the SMA crossover on the chart means that EUR/CAD is ready for a reversal.
If you’re still one of them euro bulls, though, then you could also wait for the pair to close above the broken trend line and aim for the resistance near 1.5700 – 1.5800 levels.
Whichever direction you choose to trade, make sure you place wide stops when you place your orders. Currency crosses like these tend to see higher volatility than the majors, so you gotta be extra vigilant!