Do you prefer to go with the flow and follow trends?
Or do you feel bold enough to take the opposite position?
Either way, I’ve got you covered with these setups on AUD/USD and EUR/NZD.
AUD/USD 4-hour chart by TradingView
Check out these higher lows and higher highs inside the AUD/USD channel!
The pair is approaching resistance, so will the rally be cut soon?
Stochastic seems to think so, as the oscillator is already in the overbought zone to reflect exhaustion among the sellers. A bearish spin would confirm that bearish sentiment is returning and could lead to a pullback to nearby support areas.
The AUD bulls could target the bottom of the channel at the 6700 handle or rush to take profits in the mid-channel area of interest.
After all, the 100 SMA just crossed above the 200 SMA to indicate that the path of least resistance is to the upside or that there is a good chance that the support levels will continue.
EUR/NZD 4-hour trading chart by TradingView
Next up is this neat correction setup on the 4-hour chart of the EUR/NZD.
The pair is also in the midst of an uptrend and looks ready to drop again to find support. Will buyers defend the floor?
Technical indicators are indicating bullish energy, as the 100 SMA is safely above the 200 SMA, while the Stochastic is close to reversing oversold conditions.
But before the oscillator goes higher, we may see a pullback to the area of interest near the 1.7400 handle, the trend line, the 100 SMA dynamic support, and the 61.8% Fibonacci retracement level.
Talk about a get together, baby!
A shallow correction could actually find buyers at these current 38.2% Fibonacci levels, though, so watch out for a return to the swing top if the euro bulls are eager to ship it out.