It’s time for some throwback, yo.
Get ’em while they’re hot!
Last Friday we saw GBP/NZD hitting the end of its 4-hour ascending triangle.Fast forward to today and GBP/NZD has not only dropped by more than 300 pips from the triangle resistance, but it has also popped high enough to retest the broken support.
Are we looking at a good level to ride a downside breakout? Stochastic is flashing an overbought signal so you can bet that at least some of the bears are watching.
A short trade at the first signs of bearish momentum would make for a good trade especially if Guppy falls back to its October lows.
Not convinced that the pound can fall further against the Kiwi? You can also buy GBP/NZD as soon as it confidently trades above the broken trend line support and then aim for the 1.9700 triangle resistance level. Heck, you can even make a play for the 1.9800 area of interest!
Are break-and-retest plays not your thing? Don’t worry, I got yo back.
Exactly a week ago we spotted EUR/AUD inching towards a range resistance that hadn’t been broken since June.Seems like the bears weren’t ready to let the resistance level go just yet. As you can see, EUR/AUD went back down to its 1.6340 mid-range levels before finding some support.
Will the euro bulls finally succeed at an upside breakout? Stochastic is already chillin’ like a villain around the overbought region, so you might want to think twice if you’re planning on buying EUR/AUD without a clear break above the range resistance.
If you’d rather bet on EUR/AUD respecting the range resistance for another day, then you can wait for the euro to see some bearish candlesticks and then aim for the 1.6350 mid-range or 1.6125 range support areas.