It’s all about the Aussie on today’s canvas, as we play around with swing and long-term trade opportunities on AUD/JPY and AUD/NZD. Think you can get pips from these setups?
Remember that triangle breakout that we were looking at last Friday? Well, it looks like the bears held the fort pretty well!
AUD/JPY is now trading just above the 88.00 psychological handle, which is right around the ascending triangle AND 100 SMA support that we spotted on the 4-hour time frame.
With stochastic hanging in oversold territory, you can bet your pips that Aussie bulls are already watching this one. A long trade at current levels could get you a good reward-to-risk ratio especially if you place your stops just below the triangle.
If you’re one of them Aussie bears, though, then you could also wait for a break below these support levels and aim for January’s lows, if now the area of interest near 87.00.
Ready for another trip down memory lane? Check out the mid-channel bounce that we spotted around this time last week!
As you can see, AUD/NZD is back near the 1.0875 handle, which lines up with the mid-channel level AND the 200 SMA on the daily time frame. Stochastic hasn’t quite hit oversold status, but you can start keeping your eyes peeled for the earliest signs of bullish momentum.
An upside bounce could lead to revisiting areas of interest near 1.1000 – 1.2000, while a downside breakout could drag the pair to 1.0750 or even 1.0650. Watch this one closely to see which way Aussie traders go!