Range traders huddle up! AUD/JPY is knocking on the 86.25 area, which is right smack at the mid-range resistance on the 1-hour time frame. A break above said resistance level could push the pair all the way to the 87.00 major psychoogical handle. But if the pair gets rejected at the level – as it was a couple of times back – then we might see the Aussie dragged back to its 85.40 lows. Time to bust out your trading plans and play the risk ratios in your favor, homies!
Breakout alert! AUD/USD has finally broken out of its consolidation on the daily chart and, so far, it’s in favor of the bulls. Don’t aim for the sky when buying the Aussie though, as AUD/USD’s .7750 psychological area could attract a lot of bears. Buying at current levels with stops just below the SMAS and the recent consolidation could still get you decent pips. But if you’re one of them conservative traders, then you could also wait for the pair to hit the .7750 handle and trade a potential bounce lower or an upside breakout. Just make sure you practice good risk management habits, aight?
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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.