Trend warriors huddle up! AUD/USD turned lower after hitting resistance at the .6125 handle.
What makes the Aussie’s price action interesting today is that it’s almost at the .6025 levels, which lines up with a 38.2% Fib retracement and mid-channel support.It doesn’t look like the bears are about ready to hand over the reins to the bulls, though, so it’s still possible for AUD/USD to see deeper retracements along the Fib levels or even closer to the SMA crossover.
Buying the Aussie as soon as it hits a support level AND gains momentum is your best bet if you’re betting on AUD/USD extending its almost two-week old uptrend.
If you’re one of them Aussie bears, however, then you can also short at current level, place your stops just above this week’s highs, then bail at the first signs of a bounce.
Can’t decide where to put your stops and profit targets? Check out MarketMilk’s AUD/USD volatility analysis to improve your odds!
Crossover alert! Earlier this week I told y’all that EUR/GBP got rejected big time at a major resistance area on the weekly time frame.
If you ain’t got time for weekly setups, then you’ll want to see the pair’s triangle play on the 1-hour time frame.See, EUR/GBP is chillin’ just above the .9025 that has supported the pair at least THRICE in the last couple of days.
Euro bulls can buy at a bounce and wait for the pair to hit its descending trend line resistance.
Meanwhile, euro bears can wait for a clear direction from the current consolidation before jumping in.
A short trade along the trend line resistance provides the best reward-to-risk ratio, but trading a downside break from the .9025 support doesn’t look half bad either.
Whichever bias you end up trading, make sure you’re practicing your best risk management moves!