It’s all about the comdolls on today’s canvas, as we play around with forex trading opportunities on AUD/USD and USD/CAD. Get ’em while they’re hot!
After spiking down to the .6750 area, AUD/USD is now trading around the .7025 zone.
What makes the level more interesting is that it lines up with a support from late December AND a 100 SMA retest on the 1-hour time frame.
Think the Aussie is in for more pain against the dollar? Shorting at current levels would give you a good reward-to-risk ratio especially if the pair drops back to its 2019 lows.
If you’re expecting the Aussie to continue its bullish momentum, however, then y’all might want to wait for a break above the 100 and 200 SMAs before you place your bullish bets.
Whichever direction you’re trading, make sure you’re practicing good risk management skills so you don’t blow your account on the first trading month of the year!
Here’s one for the Fib playas out there! USD/CAD is falling back down after turning lower at the 1.3665 levels.The 1.3350 handle looks attractive as a potential support, as it’s right smack at a broken range resistance AND a 38.2% Fibonacci retracement area on the daily time frame.
The dollar is still a couple of pips away from the level yet, however, so y’all have time to make trading plans for a potential retest of the 1.3350 mark.
Feeling aggressive? You could also go with momentum and short USD/CAD if you believe that the pair would really hit the 1.3350 support before seeing bullish pressure.