Whattup, forex brothas! I got my eye on AUD/JPY and EUR/AUD’s 4-hour and daily charts today. Think you can make pips from these setups?
After falling by hundreds of pips, AUD/JPY is consolidating in what looks like a bearish pennant on the 4-hour time frame.
The School of Pipsology tells us that patterns like these can lead to trend continuation. That’s not set in stone, though, so y’all should still prepare for a bit of reversal if you’re planning to trade this one.
AUD/JPY doesn’t have a lot of support going for it below the triangle, but the pair could find some in the 75.00 and 74.25 area near that downward spike that we saw at the start of the year.
If you’ve got your eyes on an upward swing, however, then you might want to consider the 76.50, 77.00, and 77.80 areas of interest as potential targets.
If you’ve been watching EUR/AUD’s range since we spotted the potential resistance a couple of weeks ago, then you’re in luck!
See, the pair is now showing some momentum after getting rejected at the 1.6200 psychological and range resistance that hasn’t been broken in more than a year. Now that’s commitment for the bears!
Shorting at current levels would yield a good reward-to-risk ratio especially if you think that EUR/AUD would hit the 1.5800 mid-range levels or even the 1.5350 range support before the bulls get their mojo back.
If you think that EUR/AUD is actually poised for an upside breakout, though, then you could also wait for a convincing break above 1.6200 before you pull the trigger on your breakout strategies.
Whichever bias you’re trading, make sure you’re on top of your risk management game, aight?