We’re talking trends today, brothas! Check out USD/JPY and GBP/AUD’s 4-hour charts and see if you can make pips off of these setups!
GBP/AUD is consolidating around the 1.7575 levels, which isn’t surprising since it lines up with a mid-channel resistance on the 4-hour chart. Not only that, but it’s also right above the 100 SMA!
Stochastic has just left the overbought region, so y’all still have time to punch in your short orders if you’re planning on riding GBP/AUD’s downtrend.
Of course, you could also wait for some bearish momentum before jumping in if you’re not sure about the pound’s demise. Whichever trading plan you decide to execute, just make sure you practice good risk management skills, aight?
Don’t look now, but it looks like USD/JPY is establishing its downtrend! See, the pair is following a falling trend line after breaking below a rising channel that had been solid since late May.
With the 100 SMA just crossing below the 200 SMA and with stochastic hitting overbought status, you can bet yo momma’s cats that other bears are watching this one too.
Shorting at current levels is a good plan if you think that the scrilla will make new lows against the yen. If you’re one of them dollar bulls, though, then you could also wait for USD/JPY to back up to its channel and trade the previous uptrend instead.