It’s all about the Aussie on today’s canvas, as I bring to you forex trade opportunities on AUD/USD and AUD/JPY. Get ’em while they’re hot!
First up is a nice and simple Fib play on AUD/USD. The pair is having trouble breaking below the .7735 area, which isn’t surprising since it lines up with a 50% Fib retracement on the daily chart. Not only that, but it’s also right smack at a resistance level that has held for most of 2016!
The cherries on top of the setup is an oversold stochastic signal and a 100 SMA retest. Will forex bulls take the bait? Buying at current levels could give you a sweet reward-to-risk ratio especially if you aim for the previous highs near .8050.
If you’re not feelin’ the love for the Aussie, though, then you could also wait for the pair to break below said support levels and aim for the areas of interest near .7400 – .7450. Just make sure you practice good risk management decisions, aight?
Here’s another one for my trend playas out there! AUD/JPY is flirting with the 87.50 minor psychological handle, which lines up nicely with not only a rising channel support, but also an area of interest in 2016. Hey, it’s kinda like the setup from above!
With the 100 and 200 SMAs waiting just below the level and stochastic hitting oversold levels, you can bet that Aussie bulls and yen bears are already watching this one.
You could buy at current levels if you think that the Aussie would see a bounce, but you could also wait for a bit of bullish momentum if you’re not sure of the pair’s direction. Just remember to keep your stops wide, aight? After all, currency crosses like these tend to see more volatility than the other majors!