You know what’s better than a trend play? That’s right, TWO trend setups!
I hope you like them comdoll crosses because we’ve got a back-to-back situation today.
In case you missed it, EUR/AUD just bounced from the 1.5700 major psychological area that lined up with a range AND trend line support on the 4-hour time frame.Missed the bus? Don’t worry! EUR/AUD has lots of upside potential after the bounce and with the SMAs supporting prices.
EUR/AUD could hit the 1.5850 range resistance and, if the bulls have enough momentum, it could also reach previous highs like 1.5900 or 1.6000.
Not convinced that EUR/AUD can extend its months-long uptrend? You can watch out for a breakout below the SMAs and the trend line and then aim for areas of interest like 1.5600 or 1.5440.
Next up is a simple Fib action. As you can see, GBP/NZD sported the first green candles after reaching the channel support on the daily time frame.What GBP/NZD’s levels more interesting is that it was also around the 50% Fib retracement of the last upswing and a key resistance zone back in May.
Are we looking at trend continuation for GBP/NZD? Buying at current levels is a good bet if you believe that the pound can keep gaining pips on the Kiwi.
If you’d rather short the pound, however, then you’ll want to do it after GBP/NZD shows a clear break below the channel support that we’ve marked.
Whichever bias you end up trading, make sure to use your best risk management practices when you execute them trading orders!
Don’t forget to check out our real-time currency strength meter.