Who’s up for more pips this week? I hope you are, because these short and swing trade opportunities on USD/JPY and AUD/USD are too good to miss! Check it, forex brothas!
After encountering resistance at the 110.30 former support AND 61.8% Fibonacci retracement area yesterday, USD/JPY looks set to revisit its April lows.
Before you sell the dollar like there’s no tomorrow, though, you should also note that there’s a rising trend line forming on the 1-hour time frame.
In addition, a trend line retest lines up nicely with the 100 SMA that has just crossed above the 200 SMA. The cherry on top of this beautiful mess is that there’s also a bullish divergence on the chart.
Will the dollar head on to make new lows this month? Or will it find support at the trend line and bust above the 110.00 psychological handle over the next couple of days? Watch this one closely, fellas!
If comdoll trading is more your thing, then this one is for you. AUD/USD is lollygagging just above the .7550 area, which is right smack at a descending triangle resistance on the 4-hour time frame.
This time around, the consolidation is also right around the 100 and 200 SMA on the chart. Not that they’ve been helpful since March, but still. You never know who’s paying attention to these indicators, right?
Conservative traders can jump in on a bit of momentum for the best R:R on a downside break. But if you think that the Aussie will outperform the Greenback in the next couple of days, then you could wait for the bulls to break past the triangle resistance before entering your orders.