Thursday Morning Currencies Brief
Today the trading ideas are NZDUSD and AUDUSD and price action is again on our side.
NZDUSD Trade Setup
The nice bullish engulfing that formed on the chart is just above a support level. As you can see form the chart, the support level is at 0.7200. I will be looking for a possible short retracement and possibly a long trade. My hypothetical stop would be placed just under 0.7200. As a first potential target I am looking at 0.7500. That is where the major resistance is and we will need to see a lot of buyers coming in to turn this one down. A few additional factors to consider:
Pin forming on weekly
Major resistance level is far away and is offering a potential good risk:reward
Check out the chart of this setup:
AUDUSD Trade Setup
The second and logical trade setup is AUDUSD. Here, we have a very similar scenario as with the NZDUSD. There is a bullish engulfing that formed on the daily. The price action engulfed two red candles, which gives even more significance to the setup. If there is a small retracement back to 0.7900 and I see a price action confirmation, I might act on it. Check the chart below for more: