Comdoll trading is hot these days, yo!
After falling sharply this week, NZD/USD is now flirting with the .6000 major psychological handle.
As you can see, the MaPs is also around a trend line support that has been keeping the bears away since late March. What’s more, stochastic is chillin’ like ice cream fillin’ in the oversold territory!
Buying at the first signs of bullish momentum would give you a good reward-to-risk ratio especially if you aim for the previous highs near the .6075 – .6125 zone.
Not a fan of the Kiwi? That’s aight, you can also wait for a clear break below the trend line and then aim for previous support levels closer to .5925 or .5850 instead.
Resistance alert! AUD/CHF has been having a hard time making new highs above .6100 after the pair had climbed by about 800 pips in the last couple of weeks.
Aside from the gap situation back in March, .6100 also lines up with a 61.8% Fibonacci retracement level on the daily time frame. Not only that, but there’s also a low key bearish divergence in the mix!
Think the Aussie will extend its downtrend against the franc? Shorting at new April lows would make for a good trade especially if AUD/CHF drops back down to the .5700 – .5800 levels.
If you believe that the Aussie will make its way towards the 100 and 200 SMAs instead, then you might want to at least wait for a bear break above April’s current highs before you make them breakout plays.
Good luck and good trading this one!