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Who’s looking for mid-week trades?

If you are, then you’ll love the simple plays that I’ve spotted on EUR/USD and GBP/NZD!

Which of these setups will you most likely trade?

GBP/NZD: 1-hour

GBP/NZD 1-Hour Forex Chart
GBP/NZD 1-Hour Forex Chart

Yesterday we checked out a bearish divergence on GBP/NZD’s 1-hour time frame around the time when it was chillin’ near a range resistance.

If you shorted the setup, then congrats! You’ve probably gained a pip or two (or a hundred) since then.

The pressure is now on the bulls as GBP/NZD hits the 1.9425 range support zone. To make things a bit more interesting, Stochastic is now in oversold territory.

If you’re one of them range playas and you think GBP/NZD is in for a bounce, then you can buy at current levels and aim for the 1.9600 range resistance for a sweet reward-to-risk ratio.

Feel like the pound will see a downside breakout instead? Wait for clear candlesticks and maybe even momentum before you can aim for a 100-200 pip move on a range breakdown.

Watch this one closely, aight?

EUR/USD: Daily

EUR/USD Daily Forex Chart
EUR/USD Daily Forex Chart

Here’s one for the swing traders out there! EUR/USD is having trouble making new highs after hitting resistance at the 1.1400 major psychological handle.

And why not? As you can see, the level has served as resistance at least four other times since 2019.

Shorting at the first signs of downside momentum would make for a good trade if EUR/USD falls back down to the 1.1200 and 1.1000 previous areas of interest.

If you’d rather buy the euro against the dollar, however, then you can also wait for a clean break above 1.1400 and aim for retests of the 1.1700 and 1.1800 levels instead.

Whichever bias you end up trading, make sure you’ve studied your average EUR/USD volatility and reviewed your risk management plays before you pull the trigger on your orders.

Forex Chart Settings:

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