Whether you like trading the Greenback or comdoll crosses, I got yo back with these short-term forex trade plays on USD/JPY and EUR/AUD. Which setup will you most likely trade?
First up is a nice and simple trend trade. USD/JPY is lollygagging just below the 111.00 psychological mark, which isn’t surprising since it lines up with a mid-channel support on the 1-hour time frame.
Stochastic is flashing an oversold signal, so you can bet your pips (with proper risk management, of course) that other bulls are also watching this one.
A long trade at current levels could get you a good number of pips especially if you place your stops just below the SMAs. Don’t place your stops too close to your entries, though. You never know when you’ll see mega volatility on yen pairs like these!
EUR/AUD had found support around the 1.5700 after breaking below an uptrend that had been solid for most of June.
It’s now chillin’ like a villain at the 1.5800 handle, which is right smack at the trend line that it had broken. Are we looking at a break-and-retest situation over here?
Shorting at the earliest signs of bearish momentum could get you a good reward-to-risk ratio especially if you believe that the euro will make new monthly lows against the Aussie.
If you’re one of them euro bulls, though, then you could also wait for the pair to break above its July highs before pricing in a continuation of its uptrend.