Who’s ready to trade trends and ranges? I hope you are, because I’ve spotted hot setups on AUD/USD and EUR/JPY that you wouldn’t want to miss!
EUR/JPY is consolidating just below the 124.50 handle, which lines up with the ascending channel support that hasn’t been broken since the start of the year.
What makes the setup more interesting is that the 100 SMA has also just crossed above the 200 SMA. Is EUR/JPY about to see a stronger bullish momentum?
Buying at the earliest signs of a bounce is a good idea if you believe that the euro would extend its uptrend against the yen. Just make sure that you place a wide enough stop for crosses like these!
If you’re one of them euro bears, however, then you could also wait for the pair to break below the channel before you place your orders.
What do you think? Will EUR/JPY bounce from the channel support?
Here’s one for the range playas out there! As you can see, AUD/USD is about to hit the .7050 minor psychological handle that’s right at a range support that has been solid since late September 2018.
Y’all might want to wait for an actual support retest to see how the bulls will react to the level. If you see a bullish momentum, then the Aussie could pop back up to its .7300 range resistance.
If the bulls fail to defend the support, though, then you can trade a potential breakout that could drag the pair all the way to the .6750 or .6900 areas of interest.