I have a few long term range setups on my radar for today and one of them looks like a big breakout.
Here are the levels I’m watching closely:
Looks like the range assist has held up really well here!
EUR/AUD could be on course from here to test its range resistance at 1.5850 minor psychological level. Will it last?
I’m getting mixed signals from technical indicators for now as the 100 SMA is below the 200 SMA while the stochastic is trending up. On the other hand, the gap between the moving averages is narrowing, so a bullish crossover may be due.
If that is the case, the EUR/AUD could have enough upside momentum to test the top of its range or maybe even break it!
I would look for a large green candle to close above resistance as this could be followed by a rally that is the same height as the box pattern or 250 pips.
This currency pair is at the top of its range and seems poised for a break to the upside. Blink and you might miss it!
A breakout to the upside could be followed by an uptrend that is the same size as the range, which is around a thousand pips.
However, technical indicators suggest that the sellers could still defend the ceiling.
For one, the stochastic has been pointing to overbought conditions for quite some time, which means buyers could take it easy from here. A move down would confirm that bearish pressure is returning, potentially pushing GBP/NZD back into nearby support zones.
Also, the 100 SMA is below the 200 SMA, suggesting that the path of least resistance is to the downside.