GBP/AUD is heading fast towards the .9350 area, which is right around a broken trend line, 38.2% Fib, and the 100 SMA that has just crossed below the 200 SMA.Are we looking at a break-and-retest setup in the making?
The pair is still a pip or two (or fifty) away from an actual retest, so you still have time to design a trading plan if you’re planning on trading this setup.
A short trade at the Fib levels would make for a good trade especially if GBP/AUD drops back to its 1.9200 previous lows.
If you’d rather buy the pound against the Aussie, however, then you’ll want to wait until the pair pops above the SMAs and aim for possible retests of the 1.9450 or 1.9700 previous areas of interest.
EUR/NZD just bounced from the 1.7000 major psychological handle, which isn’t surprising since it lined up with a 38.2% Fib retracement and a previous resistance on the 4-hour time frame.Buying at current levels would still give you a decent reward-to-risk ratio especially if EUR/NZD ends up rising above its January highs.
Before you place any orders, though, make sure you know exactly where you have to place your profit and stop loss levels, aight?
Here’s EUR/NZD’s volatility analysis to help you plan your trade!