Guess who’s back under the spotlight? No, it’s not Beyoncé with her record-setting 28th Grammy win. It’s AUD/USD dipping back to SMA territory!
As you can see, the pair’s current levels lines up with a trend line resistance that was broken last week. Not only that, but it’s also around the 100 and 200 SMAs on the 1-hour chart!
The cherry on top of the sweet setup is the 100 SMA possibly crossing above the 200 SMA and supporting a potential reversal for the Aussie.
Buying at current prices is a good bet if you’re expecting AUD/USD to make its way back up to the .7900 – .8000 key resistance levels.
If you think that last week’s “breakout” is actually a fakeout, however, then you can play a waiting game just under the broken channel resistance and be ready in case AUD/USD closes and firmly trades inside the channel again.
EUR/GBP has been on a steady downtrend since mid-January when the pair broke a key support level.
But is the party over for euro bears? EUR/GBP bulls have defended the .8550 support at least twice in the last three weeks and now we just might see another showdown.
Keep an eye out for a breakout as the euro finds resistance at the descending trend line. If EUR/GBP bulls hold the .8550 zone for another day, then we could see a break above the trend line and the 100 SMA resistance levels.
But if the bears finally manage to break the .8550 support, then EUR/GBP could head towards the .8500 or even the .8400 previous support zones.
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