I spy with my eye not one, but TWO potential break and retest plays. Here are charts you’ll want to trade if you’re into currency cross chaos!
Euro traders huddle up! EUR/CAD is lollygagging at about 50 pips below the 1.4475 handle that had not been broken as a range support since early September.Could today’s consolidation lead to a retest of the 1.4475 area? EUR/CAD doesn’t look like it’s ready to go anywhere just yet, so you still have time to consider different scenarios if you’re planning on trading this one.
If EUR/CAD extends its drop without looking back, then you might want to consider momentum plays that would get pips if the pair hits the 1.4300 major area of interest.
If you’re more into break-and-retest setups, though, then you can also wait and see how the pair reacts to an actual retest of 1.4475 before you place your positions.
Of course, you can also skip this setup altogether if you’re not comfortable trading a breakout. Hey, no position is still a position, amirite?
AUD/NZD: DailyHere’s one for the comdoll fans out there! AUD/NZD found resistance at the 1.0470 zone, which lines up with an ascending channel support that the pair had broken back in December.
The 1.0400 major psychological handle is the area to watch if you believe that we’re seeing a break-and-retest setup in the making.
The pair is only 20 pips above the level, so y’all better have your trading plans ready ASAP if you plan to catch AUD/NZD makin’ new 2020 lows!
Think AUD/NZD will return to its uptrend instead? If so, then you’ll want to wait for the pair to (clearly!) break above the 1.0500 highs before you set up your long positions.
What do you think? Which way will the Aussie go?