I hope you’re in the mood to trade the comdolls today, because I’ve got interesting forex trade opportunities on AUD/USD and NZD/JPY lined up for ya!
First up is a nice and simple trend trade for the Aussie. As you can see, AUD/USD looks like it’s being held down by the 200 SMA, which isn’t surprising since it lines up with a falling channel resistance on the 4-hour time frame.
With stochastic just leaving overbought territory, you can bet your pips (with proper risk management, of course) that other playas are also watching this one.
Think the Aussie will see more losses against the Greenback? A short trade at current levels could get you a pretty sweet reward-to-risk ratio especially if you place your stops just above the channel.
If you’re one of them Aussie fans, though, then you could also wait for a break above the SMA and the channel and aim for the previous highs above .8000.
Remember that long-term triangle support that we were checkin’ out a week ago? Well, it looks like Kiwi bulls paid attention!
Now that the comdoll has taken off, though, some bears might be ready to take a bite. The 79.00 – 80.00 area is a good level to watch, since it lines up with the falling trend line that we marked.
Keep your eyes peeled for the earliest signs of a short-term bearish momentum OR a breakout for this descending triangle!