While my short NZD/USD trade is still playing out, I decided to look for other forex setups on the comdoll pairs. I’ve been waiting for a chance to short the Australian dollar lately because the RBA just cut interest rates and the country printed a dismal jobs report for April.
I’m seeing this double top pattern just forming on AUD/JPY’s 1-hour forex chart, as the pair has been unable to break past the 96.00 major psychological level. Price is still making its way down to the neckline at the 94.00 handle and I’m considering hopping in a short trade in case a breakdown takes place.
Stochastic is already moving out of the oversold area, which means that a quick bounce might still be possible before the pair heads further south. There are no other economic reports lined up from both Australia and Japan in the next few days so I’m thinking that the recently released figures could continue to weigh on the pair.
Do you think I should wait for an actual breakdown though or would it make sense to enter around the current levels? As always, I’d love to get your feedback on my forex ideas!
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