Yo! It’s time to take another stroll down memory line since we’ll be checking up on our old setups on AUD/USD and AUD/JPY in today’s intraday charts update. Of course, we’ll be lookin’ for fresh plays as well.
Back then, the pair was hesitating at 87.50, so we were waiting for a chance to go long if the pair tests the channel’s support area by dipping to 86.90.
And well, we did get a chance to go long on the pair. So if took that chance and jumped in with a long, then congratulations on bagging 120+ pips. Aww, yeah! And if you’ve been playing this channel since August 21, then you’ve got bank, dawg! Aww, yeah!
Anyhow, the pair still has a little bit to go before hitting the channel’s resistance area. However, the pair is already hesitating, likely because it has encountered selling pressure at the area of interest at 88.20.
As such, the pair will likely be going back down soon. And all the more so, given that stochastic is already signaling overbought conditions and all that.
And if the pair does move back down, then them bears will likely be gunning for 87.50 next. Do be careful if the bearish momentum is strong enough that the pair breaks past 86.90, though.
And if the pair smashes past 86.30, then all bullish bets are off and y’all may wanna think about going short on the pair instead.
We originally had a symmetrical triangle on AUD/USD’s 1-hour chart that we identified back on September 4.
That broke to the topside, which was one of our main scenarios, so hopefully some of y’all were able to jump in with a long. But for those of y’all who missed the ride, we found an ascending channel back on September 7 that y’all can still see on that there chart.
And back then we were hoping for the pair to test the area of interest at 0.7960, so that we can add to our longs. However, the pair never did quite get there, so sorry about that y’all.
But if you were able to ride our original triangle setups or you were gangsta enough to jump in when the pair began to climb higher without testing 0.7960, then congratulations on bagging some pips.
In the process of climbing, however, the pair managed to break our original channel. But if we take the most recent price action into account, we can see that the pair appears to be forming a new ascending channel.
The would-be channel hasn’t been validated yet, though, since the pair has to move higher first. Going long here would be extra risky, however, since the channel hasn’t been completed yet, so only the most gangsta traders out there should even bother to try.
But if the pair does climb higher, then them bulls will likely be shooting for the previous high around 0.8210. Just be ready if the pair opts to climb back down instead. Although bearish control won’t be affirmed until the pair smashes past 0.7880.
In any case and as usual, just make sure to practice proper risk management, a’ight?