AUD/USD is having trouble breaking below the .7600 psychological handle, which isn’t surprising since the level lines up with a mid-channel support on the chart. What’s more, it’s also sitting right where the 100 and 200 SMAs are on the 4-hour time frame!
Buying at current levels would yield a 130-pip trade if you aim for the March highs around .7750. If you’re one of them Aussie bears though, then you could also wait for a break below the consolidation and wait for a couple of bearish candlesticks before jumping in. Hey, a move to the .7500 MaPs would still yield at least 100 pips, right?
If trading the Greenback isn’t your thing, then you’ll want to see this classic uptrend setup on AUD/NZD.
The pair is lollygagging at the 1.0800 major psychological level, which is right smack at a rising channel AND the 200 SMA support areas on the 4-hour time frame. Not only that, but a bullish divergence has also popped up to support long positions.
Will we see a bounce for the Aussie? Buying at market would get you a sweet reward-to-risk ratio especially if you aim for the previous highs around 1.1000. Just make sure to use wide stops, aight? Crosses like these tend to see volatility like nobody’s business!
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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.