I’ve got a couple of long-term range setups on my radar for today, and one of these looks prime for a big breakout.
Here are the levels I’m watching closely:
EUR/AUD: 4-hour
EUR/AUD 4-hour Forex ChartEUR/AUD 4-hour Forex Chart
Looks like the range support held up really well on this one!
EUR/AUD might be on track towards testing its range resistance at the 1.5850 minor psychological mark from here. Will it hold as well?
I’m getting mixed signals from technical indicators for now, as the 100 SMA is below the 200 SMA while Stochastic is heading up. Then again, the gap between the moving averages is narrowing, so a bullish crossover might be due.
If that’s the case, EUR/AUD could have enough upside momentum to test the top of its range or perhaps even make a break for it!
I’d stay on the lookout for a big green candle closing above the resistance since this could be followed by a rally that’s the same height as the rectangle pattern or 250 pips.
GBP/NZD: Daily
This currency pair is hanging out at the very top of its range and seems to be gunning for a break higher. Blink and you might miss it!
An upside breakout could be followed by an uptrend that’s the same size as the range, which spans roughly a thousand pips.
However, technical indicators are hinting that sellers might still defend the ceiling.
For one, Stochastic has been indicating overbought conditions for quite some time, which means that buyers could take it easy from here. Turning lower would confirm that bearish pressure is returning, possibly taking GBP/NZD back down to nearby support zones.
Also, the 100 SMA is below the 200 SMA to suggest that the path of least resistance is to the downside.
