Up and at ’em, forex brothas! Start your trading week on a strong note with these hot short-term trends on AUD/USD and GBP/CAD. Check it!
AUD/USD encountered resistance above the .8100 handle and it looks like it’s headed lower. Watch out for the .8050 minor psychological handle, which currently lines up with a broken channel resistance, 61.8% Fib retracement, and the 100 SMA on the 1-hour time frame.
The cherry on top of the sweet setup is an oversold stochastic signal. But will it lead to the Aussie extending its uptrend against the Greenback?
A bounce from the support level we spotted could lead to a retest of the .8125 area, if not new monthly highs for the pair. But if the Aussie ends up breaking past the support, then we could be looking at a drop to the .8000 handle before we see any bullish momentum.
Here’s a nice and simple trend play for ya! GBP/CAD is lollygagging at the 1.6000 major psychological handle, which isn’t surprising since it’s right smack at a mid-channel resistance AND the 100 SMA on the 1-hour time frame.
What makes the downtrend play more interesting is that stochastic is now chillin’ like a villain on the overbought territory. Will the pound go back to losing pips against the Loonie?
Shorting at current levels could get you in on the downtrend and could make you pips if the pair heads for new lows. If you’re one of them conservative traders, though, then you could also wait for a pop up to the channel resistance before you place your shorts.
Either way, make sure y’all got your risk management plays covered when trading volatile currency crosses like these!