It’s Friyay, y’all! See if you can make pips from these support and resistance chart setups on GBP/CAD and AUD/JPY. Get ’em while they’re hot!
GBP/CAD is lollygagging around the .7250 area, which isn’t surprising since the current levels line up with a falling trend line and 200 SMA resistance as well as a previous support level on the 1-hour chart.
Shorting at current levels could get you a good reward-to-risk ratio especially if you think the pound will hit new monthly lows against the Loonie.
If you’re one of them pound fans, though, then you could also wait for a break above the resistance levels that we’re watching and trade an upside breakout instead.
AUD/JPY is finding support around the 82.50 level, which is right smack at a previous trend line resistance on the 4-hour time frame.
What makes the setup more interesting is that the current consolidation also lines up with the 100 and 200 SMAs while stochastic is flashing an oversold signal.
Aggressive bulls could buy at current levels and aim for the previous highs near 84.25 for a good reward-to-risk ratio. If you’re not too sold on an Aussie rally, though, then you could wait for a bit of momentum before you enter your orders.
Just remember to keep your stops relatively wide, aight? After all, currency crosses like these can see volatility like nobody’s business!