I know you’re not packin’ up your bags for the weekend yet because setups like the ones we have on EUR/USD and GBP/NZD look so good they just HAVE to be traded! Check them out!
After falling by almost 400 pips since the start of the year, EUR/USD is finally showing a potential support. I’m talking about the 1.1120ish level, yo!
As you can see, it looks like the bulls are ready to defend the level for another day today. Before you buy the euro for a few quick pips, though, then you should also know that the 100 and 200 SMAs as well as the triangle resistance are not that far above the current prices.
You can wait for a retest of the trend line or even the SMAs if you’re one of them trend traders who think that this descending triangle would lead to more losses for the euro.
If you think that the euro bears are done flexing their muscles, though, then you can watch out for a break above the trend line and trade an upside breakout instead.
Whichever bias you’re trading today, make sure your trading plans are prepared for one or two (or a hundred) alternate scenarios on how this setup would play out!
Can’t get enough of trends? Here’s a pretty basic one for ya! GBP/NZD is consolidating around the 1.9350 handle, which is right around the 100 and 200 SMAs AND the ascending channel support on the daily time frame.
If that’s not enough to get the bulls’ attention, then the oversold Stochastic signal might get one or two bulls on board.
Buying at current levels would give you a good reward-to-risk ratio especially if you aim for the previous highs near 2.0000 psychological handle and keep your stops just under the channel that we’ve identified.
Don’t put your stops too close to current prices, though! Remember that currency crosses like these can see volatility like nobody’s business.
You wouldn’t want to miss out on a big move just because you kept your stops too tight, would you?