Sup, homies? I hope you’re in the mood for the comdolls today, because these setups on AUD/USD and NZD/JPY are too good to miss. Get ’em while they’re hot!
AUD/USD has trudged higher after finding support at the .7050 area, and now it’s knocking on the .7150 levels.
What makes the area more interesting is that it lines up with a falling channel resistance, a 38.2% Fib retracement, AND the 100 and 200 SMAs on the 4-hour chart. Oh, and check out that bearish divergence, too!
Think the Aussie is in for more pain against the dollar? Shorting at the earliest signs of bearish momentum is a good idea especially if you place your stops just above the channel.
If you’re one of them Aussie bulls, though, then y’all might want to wait for a break above the SMAs before you aim for the areas of interest near .7300 and .7350.
Where my range-trading brothas at? Remember that long-term support that we were eyeing a few days back? Well, it looks like the bulls did their thing after all!
Buying at current levels could give you a good reward-to-risk ratio especially if you believe that NZD/JPY will retest its 72.50 previous resistance.
Not convinced that the Kiwi won’t extend its bearish run? Wait for a break below 72.50, fam, and make sure y’all have your trading plans mapped out before you trade either bias!