It’s all about the Aussie on today’s canvas, as we play around with forex trade opportunities on AUD/USD and GBP/AUD. Check them out!
Remember that descending channel that we spotted a couple of days back? Well, it looks like the bulls are in the mood to push AUD/USD to its resistance level!
AUD/USD is about to hit the .7250 area of interest, which is right around the channel and 200 SMA resistance levels on the 4-hour time frame.
Selling at the earliest signs of bearish momentum could get you a decent reward-to-risk ratio especially if you place your stop just above the channel and aim for the previous lows near .7050.
The pair still have some distance to travel before the pair hits the resistance area, so y’all make sure your trading plans are solid before you execute trades on this setup!
If currency crosses are more your thing, then you’re gonna love that GBP/AUD is consolidating near the 1.8200 handle that also happens to mark a trend line retest AND is near the 100 and 200 SMAs on the 1-hour chart.
Which way will GBP/AUD go? A bounce from the trend line could push the pound back to its 1.8400 previous highs, while a downside breakout could drag it back to the 1.8000 previous area of interest.
A bullish divergence is favoring the bulls at the moment, but watch this pair closely in case we see a break below the trend line or an SMA crossover over the next couple of trading sessions.