Chart Art: Trend Continuation Trades on NZD/USD and EUR/AUD

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Welcome to mid-week trading, errbody!

Pippo tells me that we’ve got busy trading sessions ahead so I thought y’all would appreciate short-term setups today.

Who’s up for trading NZD/USD and EUR/AUD’s short-term trends?

NZD/USD 1-hour Forex Chart

NZD/USD 1-hour Forex Chart

A spike in USD weakness took briefly took NZD/USD above the .6500 psychological handle yesterday!

NZD bears eventually went back in the game though, and now NZD/USD is trading below .6450 again.

Will NZD/USD retest its weekly highs? Take note that NZD/USD has been in an uptrend since mid-November and that an unbroken trend line resistance and the 100 and 200 SMAs point to further gains.

Stochastic hasn’t hit oversold levels just yet so you can probably wait for more weakness before jumping in with your long orders.

Think NZD/USD can’t sustain its uptrend until the end of the year?

Look out for a clear break below the ascending channel pattern before aiming at previous inflection points like .6400 and .6300.

EUR/AUD 1-hour Forex Chart

EUR/AUD 1-hour Forex Chart

If you can’t get enough of comdoll setups then you better not miss EUR/AUD’s downtrend!

EUR/AUD has been forming lower highs and lower lows since last week when the pair hit a resistance at 1.5750.

EUR bears have another chance to short today while EUR/AUD is having trouble making new highs above the 1-hour chart’s 100 and 200 SMAs.

Shorting at current levels would make for a good trade if EUR/AUD extends its losses in the next couple of days.

Risk ratio watchers can also look for a retest of the descending channel resistance in case EUR strengthens a bit more before finding sustained selling pressure.

If you’d rather buy EUR against AUD, then you’ll want to wait until EUR/AUD clearly breaks its short-term downtrend before targeting previous resistance zones like 1.5650 and 1.5750.

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