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We’re having a comdoll fiesta, yo!

Today we’re looking at EUR/NZD‘s Fib play and a long-term break and retest situation on EUR/AUD.

Think you can gain pips from BOTH setups?

EUR/NZD: 1-hour

EUR/NZD 1-hour Forex Chart
EUR/NZD 1-hour Forex Chart

EUR/NZD is heading fast towards 1.7870, which is about 100 pips away from its April lows.

What makes 1.7870 interesting is that it lines up with a support level that had rejected the bears’ cause at least three times this month.

Oh, and take note that 1.7870 is also around a 38.2% Fib retracement on the chart!

A short trade around the level would make for a good entry if you’re betting on a break-and-retest scenario that would see EUR/NZD drop to new April lows.

If you’re convinced that the “break” is just a “fakeout,” however, then you can also buy EUR/NZD as soon as it trades above the 100 SMA and aim for previous resistance levels closer to 1.8000.

EUR/AUD: Daily

EUR/AUD Daily Forex Chart
EUR/AUD Daily Forex Chart

After spiking to the 1.9800 levels, EUR/AUD is now back to trading at the 1.6550 area. Now that’s a long way down!

The bears can find themselves decent competition around the current levels as it lines up with a previous resistance level on the daily time frame. What’s more, the zone is also around the 100 and 200 SMAs!

Think the euro is finally due for an upswing against the Aussie? Buying at the first signs of bullish pressure would give you a good reward-to-risk ratio especially if EUR/AUD bounces back above 1.8000.

If you believe that the euro isn’t done bleeding against the Aussie, though, then you can also enter at current levels and aim for a retest of the 1.6300 or 1.6150 previous areas of interest.

Just make sure you know your average EUR/AUD volatility when you plot them orders no matter which bias you choose to trade!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line