Geronimooooo!!! EUR/AUD is on a free fall after finding resistance just below the 1.6600 handle. Where will the bulls step in?
The 1.6300 major psychological handle is a good bet as it lines up with a strong resistance area that the pair recently broke. What’s more, it’s also around a 61.8% Fib retracement while stochastic fell to oversold territory.
A long trade at the earliest signs of a bounce would give you a good reward-to-risk ratio especially if EUR/AUD pops back up to its January highs.
If you think that EUR/AUD will see more selling before popping higher, then you can also watch out for major handles such as 1.6200 and 1.6100 as potential entry levels.
Not sure that EUR/AUD will bounce at all? You can wait until the pair firmly closes below 1.6300 and short the pair until it consolidates around an area of interest.
Good luck and good trading this one!
A couple of days ago we thought that NZD/USD would bounce higher after breaking above a descending trend line on the daily time frame.
Well that was a fail. NZD/USD is now back below the trend line and it looks like it will find support at 0.6450 or 0.6500 instead. As you can see, the area lines up with a 50% Fib retracement and 100 SMA retest on the chart.
Buying at current levels would get you in at a good spot if NZD/USD ends up returning to its December highs.
If you’d rather short the Kiwi against the dollar, however, then you’ll want to wait until it makes new intraweek lows and aim for the .6325 and .6250 previous areas of interest instead.
What do you think? Which way will NZD/USD go?