Last week, we talked about EUR/AUD chillin’ inside a symmetrical triangle after trading on a downtrend since December.
The plot has thickened today with the 100 SMA lookin’ ready to cross above the 200 SMA. What’s more, EUR/AUD is knocking on the triangle’s resistance!
Is the euro ready to reverse some of its downswing against the Aussie? Buying at the first signs of an upside breakout could get you in at a good price if EUR/AUD ends up testing the 1.5600 or even the 1.5900 previous resistance levels.
But what if the bears stay strong this week? A rejection from the triangle resistance would make it easier for EUR/AUD bears to drag the euro back below the SMAs and maybe even revisit March’s lows.
GBP/NZD is having trouble closing candlesticks below the 100 SMA, which is not a surprise cause 1.9575 is also around the 38.2% – 50% Fib zones AND is just above a trend line support that hasn’t been broken since late February.
With Stochastic chillin’ at the oversold zone, you can bet that bulls are already placing orders for a possible trip to March’s highs. Heck, they can even aim for new 2021 highs if their risk ratios are hot enough!
Pound bears can probably bank on the sharpness of the current downswing, but I gotta tell ya it’s a tall order unless we also see a break below the trend line support.
The 1.9400 area is a good target if you’re not feeling the pound but you can also aim for 1.9200 if we ever see a clear trend line breakout.
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