Who’s ready for some short-term trades? I hope you are, because I’ve got hot setups on USD/JPY and AUD/NZD lined up for ya today!
Are the tides turning for the scrilla these days? As you can see, USD/JPY looks like it’s bouncing from the 112.50 minor psychological handle, which is right smack at a falling channel resistance on the 1-hour time frame.
What makes the setup even more interesting is that the 100 SMA has also just crossed below the 200 SMA. Oh, and have I mentioned that stochastic is flirtin’ with the overbought region?
Shorting around the current levels would give you a nice head start in case the dollar extends its downtrend. The 112.00 area is a good place to aim for though you could also set your sights on the 111.50 handle if the downtrend gains traction.
If you’re one of them dollar fans, though, then you can wait for the pair to pop above the channel and aim for the previous highs near 113.25. Watch this one closely over the next couple of hours, will ya?
Here’s one for my range-trading homies out there! AUD/NZD is finding support at the 1.1000 major psychological handle, which lines up with a rising channel support on the 1-hour time frame.
With stochastic flashing an oversold signal and the 100 SMA hanging around the channel support, you can bet yo neighbor’s cat that Aussie bulls are already watching this one.
Buying at current levels could get you a sweet reward-to-risk ratio especially if you think the pair will make new highs this week.
A break below the channel opens the pair to a move back to the 1.0950 area of interest, however, so y’all make sure you’re ready with both your trend and breakout plays before you trade this one!