Welcome to the last trading day of the week, brothas! Whether you’re into day or swing trading, I got yo back with these sweet forex trade opportunities on GBP/AUD and NZD/USD. Check it!
Trend entry alert! GBP/AUD looks like it’s losing its bearish momentum around the 1.7900 major psychological handle, which isn’t surprising since it’s right above an ascending channel resistance on the daily time frame.
Buying at the earliest signs of a bounce would give you a good reward-to-risk ratio especially if the pound pops back up to its 1.8800 previous highs.
If you think that GBP/AUD’s downtrend is only getting a breather, though, then you might want to wait until the pair breaks below the channel support before you press the pedal to the metal on any short trade.
Remember that range resistance play that we spotted a couple of days ago? Well, it looks like Kiwi bulls and bears are a bit less sure of NZD/USD’s direction that we thought!
The pair is currently confined in a symmetrical triangle, which means that the next direction is fair game for both bulls and bears.
The odds are looking good for the bears, though, as the 100 SMA looks ready to cross below the 200 SMA. And let’s not forget that the pair is hanging out a range resistance that had had held from mid-April to late June!
A short trade below the .6650 mark is a good idea if you’re betting on NZD/USD going back to its range and then falling down to the .6490 range support.
If you think that the symmetrical triangle is actually a bullish pennant, though, then you could also wait until Kiwi breaks above June highs and execute an upside breakout play instead.
Whichever bias you choose to trade, remember that currency cross pairs like this one tend to be more volatile than the majors. That mean y’all gotta use wide stops if you don’t want to get booted out of your trades before you’re supposed to!