We’re checkin’ out trend and breakout setups today, brothas! Sink your teeth into these hot trading opportunities on USD/JPY and AUD/NZD!
First up is a nice and simple trend trade on AUD/NZD. The pair is about to hit the 1.0750 minor psychological handle, which is right smack at the rising channel support on the 4-hour time frame.
What makes the setup even more interesting is that the support level is near the 200 SMA while stochastic is chillin’ like ice cream fillin’ on the oversold territory.
Will the Aussie soon bounce against Kiwi? The pair has a pip or two to go yet before hitting the support levels, but a long trade around the area could already give you a good reward-to-risk ratio especially if you aim for the previous highs and place yo stops just below the SMAs.
Just make sure you use wide stops for comdoll crosses like these, aight?
A couple of days ago we noticed that USD/JPY had broken out of a neat symmetrical triangle on the daily chart. Well, it looks like the bulls have some fight left in them yet!
USD/JPY is now back above the 110.00 major psychological handle and it looks like it’s gunning to go back to the triangle pattern. The 110.50 area could prove to be a resistance, though, since it lines up with the broken support from a few days back.
Are we looking at a support-turned-resistance play over here? The bulls might have momentum on their side thanks to the strong candlesticks and bullish divergence that popped up on the chart.
But if the bears manage to hold previous support level, then we could be looking at better prices to short the scrilla. What do you think?