It’s all about currency crosses on today’s canvas, as we play around with forex trading opportunities for AUD/CAD and EUR/GBP. Which one will you most likely trade?
AUD/CAD is lollygagging just below the .9200 handle, which isn’t surprising since the level is near an area of interest for the pair. Not only that, but stochastic is also flashing an overbought signal!
Will the bulls wait for an actual retest of .9200? Or will the bears gain momentum and force a reversal even before a legit retest?
Shorting at the earliest signs of bearish momentum is your best bet if you think that AUD/CAD will go back down to its .9075 lows.
If you’re one of them Aussie bulls, though, then you can also wait for AUD/CAD to break above the .9200 handle AND the 200 SMA before you start positioning your long trades.
Good luck and good trading this one!
Resistance alert! EUR/GBP looks like it’s headed for the .9050 handle, which is right smack at a resistance level that hasn’t been broken since 2017.
What makes the setup more interesting today is that stochastic is showing a potential bearish divergence on the chart.
Take note that the pair isn’t seeing a lot of bearish momentum yet. That means y’all still have time to whip up your trading plans if you’re on team #EURGBPbears.
If you believe that the euro will extend its gains against the pound, though, then you might want to wait until the pair breaks above the major resistance area before you practice your best breakout skills.
Whichever bias you choose to trade, make sure you flex your biggest risk management muscles, aight?