We’re lookin’ at a comdoll special today, folks! Check out AUD/USD’s short-term range and CAD/JPY’s mid-term triangle!
Range traders huddle up! AUD/USD is lollygagging near the .7500 major psychological handle, which isn’t surprising since the level is right smack at a range resistance that hasn’t been broken since the start of May.
Will the bears step in today? A move down to the .7375 support area could give you at least 100 pips even if you wait for a bit of downside momentum before jumping in.
But if you think that the bulls aren’t done with their cause just yet, then you could also wait for a break above said resistance levels and wait for an upside breakout. The .7580 – .7600 is a good level to target if you’re looking for short-term opportunities.
Either way, make sure you use proper risk management when trading short-term setups (or any type of setup, really) like these!
Here’s one for the yen traders out there! CAD/JPY looks like it’s about to bounce from the 81.25 area, which lines up with a rising trend line that makes up a potential symmetrical triangle on the 4-hour time frame. What’s more, Stochastic is also hinting of a possible divergence!
A long trade at current levels could get you a decent reward-to-risk ratio especially if you place your stops just below the April lows and aim for the 83.00 – 84.00 area. But if you’re into buying yen these days, then you could also wait for a downside breakout instead.
Whichever direction you choose, remember that yen crosses like these tend to be more volatile than your average dollar pair. That means wide stops and extra vigilance, yo!