Chart Art: Trend and Retracement Plays on EUR/USD and GBP/AUD
Up and at ’em, forex brothas! Time to get busy with these hot and fantastic forex trend plays on EUR/USD and GBP/AUD. Check ’em while they’re hot!
Remember that triangle breakout that we spotted two weeks back? Well, it looks like it was a legit breakout after all! If you missed the boat but still want to get in on the action, then this short-term setup is for you.
GBP/AUD has just bounced from a channel resistance area, and it looks like it’s headed fast for the mid-channel levels that happen to be around the 50% Fib retracement AND 200 SMA support zones. Think the pound will bounce higher?
I’m not seeing any upside momentum just yet, so you might want to wait until the pair settles down before you place your long entry orders. Also, keep in mind that you’re trading a currency cross pair, so y’all better make sure you use wide stops if you’re planning on trading this setup!
Last week I made a case for the bulls AND bears using a channel on EUR/USD. Well, it looks like the bulls made pips rain this time!
After flirting with the 1.0900 levels, the pair is now chillin’ like a villain around the 1.0850 area. What makes the level interesting is that it has served as area of interest on the daily chart a few times. What’s more, it’s also right around the 200 SMA on the chart.
Will the euro fill the weekend gap and drop closer to the 1.0700 levels? Or will it break higher and trade above 1.1000 for the first time since November? Keep close tabs on this one, fellas!
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line