I’m looking at a mix of short-term and long-term setups this week, with trend and countertrend plays to boot. Check ’em while they’re fresh!
Aha! I’m finally seeing a bit more action on this pair! EUR/AUD was stuck inside a tight range for quite a while but sellers were able to push their way out.
If price gains further downside traction, it could head to the next targets marked by the Fibonacci extension tool. I’m keeping my eye on the 61.8% level in particular since this is close to the swing low and my target on my short trade.
Stochastic has room to head lower for now, which suggests that euro bears could stay in control for a bit longer. However, the oscillator is also nearing oversold territory, so there may be a bounce at the nearby 38.2% extension.
Anyone up for a quick countertrend play? GBP/AUD has been cruising lower inside a descending channel on its 1-hour chart and is approaching the bottom around the 1.7475 level.
Stochastic is already indicating oversold conditions, so buyers might be ready to jump back in soon. In that case, price could still retreat to the top of the channel or the mid-channel area of interest.
Just make sure to practice proper risk management when going against the flow, okay?
NZD/CAD recently breached support around the .8800-.8850 region then slumped to a low of .8745 before taking a break from the dive. This could be a sign that a correction is underway while stochastic is also pulling up.
The Fibonacci retracement tool shows where sellers might hop in, and the 61.8% level looks like a prime spot. After all, this lines up with a falling trend line connecting the highs since last month and the former support area.
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