After trading just shy of the 1.6300 range resistance handle, EUR/AUD is now trading at around 1.6200.
Does this mean that you’ve missed the bear bus? Not exactly. For one thing, stochastic looks like it’s just about to drop from the overbought territory.
Shorting at current levels could still give you a decent enough reward-to-risk ratio especially if you place your stops just above 1.6300 and aim for the big 1.6000 range support.
Not a fan of shorting the euro against the Aussie? That’s alright, you can also look at shorter time frames and see if you can catch a pip or two from potential retracements to this week’s strong bearish move.
Just remember that countertrend trading isn’t for everyone!
NZD/CAD is finding support around the .8650 levels which isn’t surprising since the area lines up with a previous resistance and the 200 SMA on the daily time frame.
Can the bulls extend Kiwi’s bullish swing against the Loonie? Buying at current levels is a good idea if you think that NZD/CAD’s uptrend still has juice.
If you’d rather short NZD against CAD, however, then you might want to wait until NZD/CAD trades comfortably back below the 200 SMA before you make any move.
Whichever bias you’re trading this week, don’t forget to make trading plans for them and to STICK TO THEM!