Who’s up for some hot mid-week trades? I’ve got a trend play on AUD/USD and a nice range setup on GBP/NZD for those who are feeling the comdolls today!
AUD/USD is about to hit the .7125 levels, which is right smack at a descending channel resistance on the 4-hour time frame.
Since price is already above the 100 and 200 SMAs and stochastic hasn’t hit overbought levels yet, there’s still a chance that this bullish move could have enough juice to break above the channel resistance.
Selling at the earliest signs of bearish momentum could make for a decent trade especially if AUD/USD drops back down to the .7050 area of interest.
If we do see an upside breakout, however, then y’all might want to watch out for a retest of the .7200 previous resistance.
Range playas gather around! As you can see, GBP/NZD is about 100 pips away from the 1.9500 major psychological handle that also marks a range resistance on the 4-hour chart.
What makes the setup more interesting is that stochastic is already flashing an overbought signal.
Is it time to sell? Shorting at current levels is a good idea if you think that the pound will head lower soon.
Selling at 1.9500 would provide better reward-to-risk ratio, however. If y’all are holding out for an actual retest of the range resistance, then you should at least be prepared in case price doesn’t reach the mark before it turns lower.
Think the pound will trade higher than 1.9500? That’s alright, you can also prep your range breakout strategies.
Whichever trading plan you end up trading today, make sure you’re practicing good risk management, mmmkay?
That’s it for me today. Don’t forget to use your best risk management practices when you’re executing your trading plans, aight?