AUD/NZD is lollygagging around the 1.0450 area, which is right smack at a descending trend line retest that’s also around a 50% Fib retracement and the 200 SMA on the 1-hour time frame.
What makes the setup more interesting is that MarketMilk’s daily time frame moving averages are still pointing to a “bearish” trend for AUD/NZD on the DAILY time frame.
Are AUD/NZD bears looking to extend the pair’s downtrend? Shorting at the earliest signs of bearish momentum would give you a decent reward-to-risk ratio especially if you place your stops just above the trend line and aim for previous lows near the 1.0400 MaPs.
If you’d rather buy the Aussie against Kiwi, however, then you can also wait for a clear break above the trend line and target previous areas of interest closer to 1.0500 instead.
Support alert! EUR/GBP is about to hit the .8400 major psychological level, which lines up with a range support that hasn’t been broken by the bears since mid-2016. Wowza!
Think EUR/GBP is about to bounce? Stochastic and Williams %R think so! Both oscillators are signalling the pair’s “oversold” status on the daily time frame.
The pair is still a few pips away from an actual .8400 retest, so you might still have time to design a trading plan around the range setup.
Not sure how big a stop you should use should you trade the weekly time frame? You should know that EUR/GBP tends to move by less than 300 pips in one direction every December for the last five years.