Welcome to a brand-spankin’ new trading month, errbody!
Today we’re checking out trend and retest opportunities on GBP/USD and EUR/AUD.
Which one will you trade this week?
GBP/USD: 1-hour
Breakout alert! Cable broke below a trend line support last week and hit bottom just under the 1.3900 handle before seeing some support.
The pair is now chillin’ below the 1.4000 minor psychological level that’s also a few pips away from a 38.2% Fib retracement, the 1-hour SMAs, and the broken trend line.Can the bears defend the 1.4000 zone? New daily lows for the pair could drag the pound all the way to last week’s lows. Heck, it can even hit the 1.3850 levels if the bears get enough momentum!
If the bulls manage to push the pound firmly above the trend line and the SMAs, however, then y’all better be ready for an extended uptrend and a possible trip to GBP/USD’s February highs.
EUR/AUD: 4-hour
Look who’s bouncing like an early Easter bunny!
EUR/AUD jumped by more than 400 pips in the last TWO days and now the pair is trading just below the 1.5600 psychological handle.As you can see, the level lines up with not only the 100 and 200 SMAs, but also a trend line resistance that hasn’t been broken since December 2020.
Momentum below the 1.5600 zone could mean more losses for the euro and possibly a trip back to its 1.5250 February lows.
Meanwhile, a clear break above the SMAs and the descending trend line could mean a longer-term reversal that could take EUR/AUD to the 1.5900 or 1.6000 previous inflection points.
