It’s all about the Aussie on today’s canvas, as we play around with forex trading setups on AUD/CAD and GBP/AUD. Get ’em while they’re hot!
AUD/CAD is lollygagging around just above the .9450 mark, which isn’t surprising since it’s right smack at a rising channel support AND a previous support and resistance level on the 4-hour time frame.
What makes the setup even more interesting today is that there might also be a bullish divergence in the making.
Will all these signs lead to a bounce for the Aussie? Buying at current levels would give you a good reward-to-risk ratio especially if you aim for the previous highs above .9600 and place your stops just below the channel.
If you’re not feelin’ the love for the Aussie, however, then you could also wait for a convincing break above the channel and trade a bearish move instead. Just make sure y’all wait for momentum, ya hear? You wouldn’t want to get stuck trading a fakeout!
Support alert! As you can see, GBP/AUD just bounced from the 1.8200 handle that’s around the 100 SMA and a 38.2% Fib bounce on the daily chart.Those who think that this is means an extension of GBP/AUD’s uptrend might want to jump in at current levels and aim for a trip to the previous highs near 1.8950.
Not a fan of the pound? That’s cool, too. You can pull a countertrend trade if (when?) the pair hits the previous resistance and aim for a drop back to the mid-channel support or even the 1.7500 lows.
Of course, you gotta for sure if you’re good with countertrend trades first! It’s not for everybody, ya know…