It’s all about the Aussie on today’s canvas, as I bring to you forex trade opportunities on AUD/USD and GBP/AUD. Check it out, brothas!
Remember that resistance-turned-support play that we eyed a couple of days back? Well, it looks like Aussie bulls paid attention! The pair is now trading around the .7950 levels, which lines up with the pair’s high before it retraced back to the broken channel resistance.
What’s interesting about today’s consolidation is that it looks like it’s about to break a sharp ascending triangle on the 1-hour time frame. And with the 100 SMA just crossing above the 200 SMA, you can bet your pips (with proper risk management, of course) that other traders are watching too.
Think the Aussie will break higher against the Greenback today? Buying at the earliest signs of an upside breakout could get you serious pips especially if you aim for the previous highs near .8025.
But if forex bears pay attention to an almost overbought stochastic signal and the pair breaks BELOW the pattern, then we could be looking at a move back down to the .7800 – .7850 broken channel resistance area.
Here’s one for the range playas out there! GBP/AUD is headed fast for the 1.5950 area, which lines up with a range support that hasn’t been broken since October last year.
Stochastic has just hit oversold territory, so you can bet that pound bulls are already paying attention. The pair has some distance to go before hitting the support, area, though, so y’all still have time to whip up your trading plans before you have to place your orders.
Buying at the support area can get you a good reward-to-risk ratio especially if you place your stops just below the range support. Just make sure you give your stops enough room, aight? Remember that currency crosses tend to be more volatile than the majors. You wouldn’t want to be stopped out just before the action starts, would you?