After talking about currency crosses for days, let’s head back to majors territory with these swing trade setups on EUR/USD and AUD/USD.
Countertrend traders huddle up! Looks like EUR/USD’s latest downswing has lost its momentum as the pair hovers around the 1.1150 minor psychological handle.
What makes the level more interesting is that it lines up with a mid-channel support on the 4-hour time frame. Oh, and there might also be a bullish divergence in the works!
A long trade at the earliest signs of a bounce could get you a decent number of pips especially if the pair pops up to the previous highs near 1.1200 or even the SMAs close to 1.1300.
If you think that the bears are just taking a breather, however, then you could also short EUR/USD as soon as it breaks below its weekly lows.
Whichever bias you choose to trade today, make sure you’re executing according to your trading plans!
Not a fan of countertrend trades? Here’s a range play for ya!
AUD/USD just popped up a doji around the .7000 major psychological handle which is awesome for two reasons.
First, the .7000 mark has served as solid support at least twice before since the start of the year. And then there’s an oversold stochastic signal, which ups the odds of a possible bounce near the range support.
Buying at current levels could give you a good reward-to-risk ratio especially if you aim for the mid-range levels near .7125 and place your stops just below .7000.
If you’d rather short the Aussie, then you might want to wait for a legit break below the support that we’ve identified before you execute any breakout plays.
Good luck and good trading this one, brothas!