Ready for more chart action?
We’re all about European currencies on today’s canvas, as we play around with a range trade on EUR/USD and a possible long-term reversal on GBP/AUD.
What do you think of these setups?
EUR/USD: 1-hour
Another day, another failed attempt for the bulls! As you can see, EUR/USD just turned lower after hitting the 1.1900 major psychological level for the second time in two weeks.
Shorting at current levels would still give you a decent reward-to-risk ratio especially if you aim for the range support near 1.1700.
If you’re not feelin’ like shorting the euro against the dollar, however, then you can also sit in the sidelines until EUR/USD actually breaks above the 1.1900 resistance and likely head for the big 1.2000 figure.
Watch this one closely, mmmkay?
GBP/AUD: 4-hour
I spy with my eye a resistance-turned-support opportunity!
GBP/AUD is now about 150 pips above the 1.8180 level that had served as resistance in June and July.
Think the pound is due for an uptrend? You can wait for GBP/AUD to trade above June and July’s highs if you’re one of them conservative traders who would rather wait for confirmation.
Of course, you can also buy at current prices and then add up if you’re confident about the pound bouncing against the Aussie.
Not a fan of the pound? That’s alright, you can also make trading plans around the 1.8400 handle holding as resistance and possibly confining GBP/AUD inside a range.