The Labor Day holiday may be over, but the party continues with not one, but TWO trend plays coming at ya on AUD/CAD and GBP/NZD’s forex charts!
First up is a nice and simple Fib trade on GBP/NZD. As you can see, bulls and bears are having tug-o-pips around the 1.9075 level, which is right around a 50% Fib retracement AND a rising trend line on the 4-hour chart.
If that’s not a sweet enough spot for ya, then you should also know that the current price is also right around the 100 SMA and a previous resistance area.
Buying at current levels would give you a good reward-to-risk ratio especially if you place your stops just below the trend line and aim for the previous highs near 1.9900.
If you’re not feelin’ like buying the pound against Kiwi, though, then you could also wait until bears break through the trend line support (that has’t been broken since late July) and aim for the 200 SMA levels instead.
Whichever bias you’re trading this week, make sure you execute your trading plans like yo momma’s watching, aight?
AUD/CAD is confined in what looks like a descending triangle after falling by hundreds of pips in the last couple of months.
Does this mean that the bears are done? Or are they just taking a breather before they jump in again?
The School of Pipsology tells us that descending triangles tend to break to the downside. Triangles in general represent hesitation, though, and this one could very well break to the upside if there’s simply no more sellers left.
What do you think? Which way will the pair go?
A break above the triangle could take the Aussie all the way up to the .9100 previous area of interest.
On the other hand, a downside break could drag AUD/CAD to the .8800 handle that the pair hasn’t seen since 2010.
Keep close tabs on this one, yo!