Who’s up for trading trends today? I hope you are, because I’ve spotted interesting ones on AUD/USD and EUR/JPY. Check them out!
AUD/USD is lollygagging around the .7375 area, which is right around a mid-channel support AND the SMAs on the 1-hour chart.
Stochastic is already in oversold territory, so it’s possible that the pair could soon see bullish momentum. If it ever gets past the SMAs, that is.
A break above the SMAs could push the pair back to the top of the channel near the .7435 levels. But if the bears continue to control AUD/USD’s gains, then the Aussie could revisit its previous lows near .7340.
Here’s a textbook trend play for ya! EUR/JPY is having trouble breaking below the 130.25 levels, which is right smack at a trend line, 50% Fib, AND the 100 SMA on the 4-hour time frame.
And if those aren’t enough to attract the bulls, stochastic is also chillin’ like a villain in the oversold area.
Will the euro extend its uptrend against the yen? Buying at current levels could give you a good reward-to-risk ratio especially if you aim for new highs above 132.00.
If you’re one of them euro bears, though, then you could also wait for a break below the trend line that we’re watching and trade a downside breakout instead.
Whichever bias you choose to trade, make sure you practice good risk management skills when you execute your plans!