I’m servin’ up a downtrend and a potential breakout on AUD/JPY and GBP/CAD’s charts today. Get ’em while they’re hot!
AUD/JPY is having trouble breaking above the 82.00 major psychological handle, which isn’t surprising since it lines up with a falling trend line, 100 SMA, AND an area of interest on the daily time frame. What’s more, stochastic is flashing an overbought signal!
Shorting at the earliest signs of bearish momentum is a good idea if you’re planning on riding the trend.
If you’re one of them Aussie bulls, though, then you could wait for the pair to trade above the resistance levels that we’ve spotted and trade an upside breakout instead.
Whichever bias you choose to trade, make sure you use wide stops! Remember that currency crosses and longer-term time frames tend to see more volatility than the dollar majors or short-term charts.
Breakout alert! GBP/CAD is about to test the 1.7200 major psychological handle and 100 SMA that have served as resistance for most of September.
A convincing break above the level could take the pound all the way to the 1.7300 or 1.7500 previous resistance levels.
If the pair drops back below the trend line, however, then the pound could head to the 1.7000 September support or the previous lows near 1.6650.