It’s all about the Kiwi on today’s canvas, as we explore forex trading opportunities on NZD/USD and AUD/NZD. Check it!
NZD/USD recently bounced from the .6750 minor psychological handle, which isn’t surprising since it lines up with a trend line and 100 SMA resistance on the 4-hour time frame.
What makes the setup even more interesting is that the 100 SMA also recently closed below the 200 SMA. If the last two instances are any indication, then the Kiwi could be in for a longer downtrend.
Think the comdoll will extend its losses against the dollar? Shorting at current levels could still give you a good reward-to-risk ratio especially if you aim for the previous lows near .6600.
If you’re not sure about Kiwi showing further weaknesses, however, then you could also wait for the pair to break above the trend line before you place your long trade orders.
Whichever bias you choose to trade, make sure to use good risk management practices when you execute, aight?
Retracement traders huddle up! As you can see, AUD/NZD is back at the ascending channel support area that it had broken back in early December.Are we looking at a support-turned-resistance situation over here? Trading the bounce from the previous support level could give you a good reward-to-risk ratio if you aim for a dip below 1.0500.
Take note, however, than the Aussie is still poppin’ up one green candle after another. This means that we could still see some bullish momentum before AUD/NZD turns lower.
If it does go back above the trend line, then you might want to watch out for the SMAs for potential resistance instead.