It’s all about the Aussie on today’s canvas, as I bring to you forex trade opportunities on AUD/USD and EUR/AUD. Check out these neat trend plays, yo!
Resistance alert! AUD/USD is having trouble breaking above the .7750 psychological handle, which isn’t surprising since the level is right around a mid-channel area AND the 100 SMA on the 4-hour chart.
With stochastic almost at the overbought area, you can bet your pips (with proper risk management, of course) that the bears are already watching this one.
Shorting at current levels could get you a good reward-to-risk ratio especially if you place your stops just above the SMA and the pair hits its previous lows.
What do you think? Is the Aussie in for more pain against the dollar?
It looks like EUR/AUD has experienced bearish pressure after hitting above 1.6000 late last week. The pair is finding support around 1.5880, though, as it’s also near the previous resistance and the 38.2% Fib retracement on the 4-hour time frame.
Since stochastic is flashing an oversold signal, it’s likely that EUR/AUD can go on its merry way up and even make new 2018 highs. If this is the case, then we’re looking at a buying opportunity around the current levels.
If you’re not a euro fan, though, then you could also wait for the pair to hit (and break) the other support levels marked on the chart. Whichever bias you choose to trade, just make sure you stick to the plan and practice good risk management!