Remember the AUD/USD uptrend that we were looking at a couple of days back? Well, it looks like the bulls haven’t gotten the momentum that they need to support their cause. The pair is currently hanging out just above the .7450 area, which lines up with a rising channel support on the 4-hour time frame. Not only that, but the 100 and 200 SMA support are keeping the bears in check for now. A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for the previous highs near .7700. Of course, you could also wait for a break below the pattern and trade a breakout if you’re one of them Aussie bears.
Breakout alert! The ascending triangle that we’ve been checking out has finally broken to the upside! USD/CAD just broke above the 1.3100 handle, which lines up with the triangle’s resistance area. Are we looking at a breakout or a fakeout? Going long at current prices is a good idea if you believe that the Greenback is only getting started against the comdolls, but you could also wait for a retest of the broken resistance if you’re not too sure about buying the dollar against the Loonie.
Last one for this batch of setups is a simple resistance play on AUD/JPY’s 4-hour time frame. The pair is having trouble breaking above the 80.50, an area that has been serving as a support and resistance level since early February. After getting rejected at the level once this month, it looks like the bulls are gearing up for another resistance test. See, the 100 SMA has just crossed above the 200 SMA while stochastic is sporting a small bullish divergence. Think the yen will lose more pips against the Aussie this week? Watch this one closely, folks!
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.