Who’s up for trading the Aussie today? I hope you are, because these swing and long-term forex charts on AUD/JPY and AUD/CAD are too hot to miss!
As you can see, AUD/CAD is seeing bearish momentum after finding resistance just below parity.
What makes the setup interesting is that the Aussie could be headed for the .9850 level, which lines up with a rising trend line support that forms part of an ascending triangle pattern.
With stochastic already in oversold territory, you can bet yo momma’s cats that other bulls are already waiting for a chance to buy.
Will AUD/CAD find support at the .9900 MaPs near the 100 and 200 SMAs? Or will the bears drag it down to .9850 before the Aussie sees any bullish pressure?
Watch this one closely, brothas!
Earlier this week we looked at AUD/JPY’s long-term range support and bullish divergence as an opportunity to buy at a “bottom.” Fast forward to a couple of bearish candlesticks and we might be looking at a downside breakout after all.
See, AUD/JPY is currently 70 pips away from the 84.50 support that we spotted and it looks like it might have momentum by its side. Shorting at current prices could get you a good reward-to-risk ratio if you’re sold that the Aussie is breaking lower against the yen.
But if you think that we’re looking at a fakeout, then you could wait for the pair to either make new lows (to confirm a breakout) or go back to its long-term range before placing your buy orders.
Whichever direction you choose to trade, make sure you practice good risk management in your executions!