I’ve got a mix of short-term and long-term plays on this week’s game plan. Check ’em out while they’re fresh!
First up is this neat range bounce on the daily time frame of EUR/AUD. I believe my friend Happy Pip is already in on this short trade!
Now that bears seem to be gaining traction, price could be well on its way to test the range support all the way down to the 1.4400 major psychological mark. However, buyers could still have some defense lined up at the mid-range area of interest around the 1.5100 handle.
Note that stochastic has already reached oversold territory, which suggests that euro sellers might be feeling exhausted. A return in buying pressure could lead to either a quick pullback or another bounce to the top of the range.
Here’s another range play on an Aussie pair! This one has bounced off the bottom of its daily range at the .9600 major psychological mark and might be gunning for the opposite side at 1.0250.
Stochastic is on the move up to signal that buyers are in control, but the oscillator is hovering at overbought levels to reflect exhaustion. Turning lower could bring sellers back in and lead to a brief dip.
Better keep tabs on oil market news if you’re trading this one, too!
Speaking of oil, here’s another setup you might wanna keep tabs on if you think the commodity and positively-correlated Loonie are in for more moves.
This pair is trading inside a descending channel on its 1-hour chart and is currently testing the top, which happens to coincide with a strong area of interest around 1.7250 to 1.7300.
A bearish divergence can be spotted as price made higher highs while stochastic had lower highs since May 23, signaling that resistance might hold. If so, the pair could make its way back down to the recent lows at 1.7120 or the channel bottom closer to the 1.7000 handle.
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