Ready to get some pips? We’re starting this week’s chart parade with not one, but TWO range plays on the comdolls. Check out AUD/NZD and GBP/CAD’s charts, yo!
If you’re wondering why AUD/NZD can’t seem to trade above the 1.0500 mark, it’s probably because the major psychological handle lines up with a mid-range resistance on the daily chart.
Before you sell the Aussie, note that bulls and bears are still battling it out. The 100 SMA crossing above the 200 SMA is a point for the bulls. On the other hand, the wicked wicks of the latest candles and an overbought stochastic signal are stacking the odds in favor of the bears.
Which side do you think will gain momentum? A trade in either direction could yield a good reward-to-risk ratio if you place your stops just above/below the recent consolidation and aim for the range support or resistance.
If you’re not comfortable placing bets on either side just yet, then you could also wait for a bit of momentum before you pull the trigger on your orders.
Whichever bias you choose to trade, just make sure to use wide stops, will ya? Remember that currency crosses like these tend to see higher volatility than the major dollar pairs!
I don’t always feature weekly charts, but when I do, it’s because the pair is sitting on a hot area of interest!
GBP/CAD just hit the 1.6000 major psychological level, which lines up with a range support that hasn’t been broken since 2016. That’s a coupla years stronger than Liam and Miley’s marriage!
Before you buy the pound like there’s no tomorrow, though, note that the bearish momentum doesn’t seem ready for a breather just yet. That is, GBP/CAD could still break below the support if its current momentum keeps up.
Buying at the earliest signs of bullish momentum is a good bet if you think that GBP/CAD’s range support would hold. If you think that the range is about to be broken, however, then you could also get your breakout strategies ready in case the pair breaks below 1.6000.