It’s Friyay, forex friends! Let’s get the most pips out of the week with these simple support and resistance setups on AUD/JPY and NZD/CAD!
AUD/JPY is having a hard time breaking above the 82.50 levels, which isn’t surprising since the level lines up with not only a previous support and resistance, but also the 200 SMA resistance on the 4-hour chart.
Stochastic is flashing an overbought signal, so you can bet your pips (with proper risk management, of course) that other bears are already watching this one.
Think the Aussie will extend its downtrend against the yen? Or will the bulls finally push for a break above the 200 SMA and pull it back up to its 84.00 previous highs? Watch this one closely, fellas!
Breakout or fakeout? NZD/CAD has just broken below a rising trend line on the daily chart, which could be a sign that the pair is done rising for the time being.
The bears will still have a battle on their hands, however. As you can see, the .9250 handle marks not only a 50% Fib retracement, but also a major support level back in early 2017. And with stochastic sporting an oversold signal, it’s likely that some of the bulls are enticed to come back.
A bounce from the level could push the pair back up to its .9500 previous highs. On the other hand, a clear break below the Fibs could drag the pair back to its .9000 major psychoogical level.
Whichever bias you choose to trade, make sure you have your trading plan ironed out before you place your orders!