Who’s up for range and breakout trades?
Check out these setups and see if you can grab some pips today:
Did you know that Cable has been trading inside a 100-pip range since the second half of May?
GBP/USD is now heading for the 1.4150 mid-range levels just as Stochastic reached the oversold area.
Will the pound see a mid-range bounce today? Bulls can start buying GBP/USD as soon as the 1.4150 minor psychological handle holds as support.
A break below the mid-range AND the SMA support levels, on the other hand, can attract bears into dragging GBP/USD to the 1.4100 range support.
Watch this one closely, errbody!
EUR/AUD broke below the ascending channel that we talked about a few days back but it looks like the bulls kept it together at the 1.5670 support.
The pair is now forming what looks like a Reverse Head and Shoulders pattern on the 1-hour time frame. Thing is, the pattern’s “neckline” also lines up with a 38.2% Fib retracement of the latest downswing.
So, are we looking at a reverse head and shoulders breakout in the making? Or just a Fib retracement of a downtrend?
Stochastic giving us an “overbought” signal should fire up the bears who can target June’s lows near 1.5670.
A break above the “neckline,” however, can also bump up the euro enough to retest the broken channel support near the SMAs. Heck, a strong momentum could even take EUR/AUD back to its previous uptrend!