It’s all about the Aussie on today’s canvas, as I bring to you long-term trend opportunities on AUD/JPY and EUR/AUD. Check ’em out while they’re hot!
AUD/JPY recently bounced from the 84.50 psychological handle, which was right smack at a rising channel support on the 4-hour time frame. Think the bulls have enough juice to push it back to the 91.00 – 91.50 previous highs?
If you think they do, then you could buy at current levels and place your stops just below the channel for a good reward-to-risk ratio. Watch out for the 87.00 mid-channel resistance though! With stochastic already near the overbought territory, the bears could set camp at the nearest area of interest and try to drag the pair back down.
For those who are planning on trading this setup, remember to keep your stops wide. Remember that yen crosses like these tend to see volatility like nobody’s business!
Here’s another one for the trend warriors out there! EUR/AUD encountered resistance at the 1.5700 psychological handle and is fast approaching the 1.5350 area. BFD, since the level is near a 61.8% Fib retracement, previous resistance, AND a rising trend line that hasn’t been broken since early February.
Will the euro see another leg higher against the Aussie? With stochastic about to hit the oversold region, you can bet your pips that the bulls are already watching this one. Buying around the 1.5300 area could get you a sweet deal especially if you place your stops just below the trend line and aim for the previous 1.5700 previous highs.
If you think that the euro will end the year by breaking the uptrend, though, then you could also place your orders below the trend line and wait for legit breakout signs before trading a possible reversal.
Good luck and good trading, brothas!