Yo. Who’s up for trading commodity-related currencies?
If you are, lemme show you NZD/USD’s Fib retracement and EUR/AUD’s 4-hour downtrend.
Just when NZD/USD was starting to recover from last week’s selling, more sellers showed up at the .6160 zone and said “not today!” to NZD buyers.Of course, it didn’t help that the .6160 area is near the 38.2% Fibonacci retracement and area of interest on the 1-hour time frame.
NZD bears who are taking cues from the 100 and 200 SMAs just above current prices can short at current levels to trade the trend.
Targeting new monthly lows can also work if you’re after better risk ratios.
Think NZD/USD can still revisit last week’s prices?
You can also wait until NZD/USD clears its SMA dynamic resistance levels if you’re betting on NZD shooting back up to its .6250 previous highs.
Get ready to talk confluence because EUR/AUD is chillin’ like a villain near an area of interest!
The pair is consolidating at the 1.4520 zone, which is right at a descending channel resistance.Those who are thinking of buying EUR/AUD have to mind the 100 SMA that’s sitting just above current prices.
Not a fan of SMAs? Maybe the 4-hour chart’s bearish divergence would make you think twice.
EUR bears can short at current levels or at the first signs of bearish momentum to maximize a potential move to August lows.
If you’d rather buy EUR against AUD, however, then you’ll want to do it when EUR/AUD breaks above its channel and stays above the SMAs on the chart.