We’re checkin’ out the Aussie today, forex brothas! See if you can make pips from these hot trading opportunities on AUD/USD and EUR/AUD!
First up is a nice and simple trend trade on AUD/USD. The pair is having trouble making new lows below the 1.7250 area, which isn’t surprising since it’s near an ascending channel AND 100 SMA support on the 4-hour time frame.
Will the bulls extend the Aussie’s uptrend for another day? A long trade at current levels would give you a good reward-to-risk ratio especially if you aim for the previous highs near 1.7400 and place your stops just below the channel.
If you’re not convinced that the Aussie is ready to bounce just yet, however, then you could also wait for a bit of momentum before you place your long trades.
If range plays are more your thing, then I’ve got a setup for ya!
EUR/AUD just bounced from a strong support near 1.5350, and it looks like it’s headed for the 1.5750 mid-range level or even the range resistance near 1.6150.
What makes the setup more interesting is that the pair is sporting a bullish divergence on the daily time frame.
Are euro bulls just getting started with their momentum? Or will the bears shut down any bullish pressure and force a downside breakout?
The bulls have the advantage for now, but keep your trading plans flexible in case we see EUR/AUD drop back down to (or even break below) its range support levels!