Ready to hunt for pips today? It’s all about the comdolls as we look at short and long-term trends for AUD/USD and USD/CAD. Check it!
AUD/USD is having trouble trading below .6950, which isn’t surprising since it’s around the 200 SMA, the big .7000 handle, and a trend line that has been serving as support since late May.
Will its consolidation lead to a bounce from the trend line? Or are the bears just taking a breather before they drag AUD/USD lower?
Buying at the earliest signs of bullish momentum would give you a good reward-to-risk ratio especially if the Aussie ends up making new June highs.
If the pair turns lower, however, then we might see the start of a double top pattern breakout that my buddy Pip Diddy recently talked about.
Watch this one closely, and make sure y’all have strategies and trading plans in place no matter which direction AUD/USD trades next!
USD/CAD is sporting almost the exact same setup as AUD/USD! Except for the time frame, that is. And the currency cross bias. And the comdoll involved.
Okay, so maybe it’s not EXACTLY the same. But you get the drill, right?
USD/CAD is also chillin’ like a villain around the 200 SMA, which lines up with a rising trend line that hasn’t been broken since September 2017. That’s around the time our homeboy Rafael Nadal snagged his 16th Grand Slam in the U.S. Open!
I’m not seeing any bullish momentum just yet, so y’all should be careful if you’re planning on trading with the trend. A trip back to the 1.3550 or 1.3650 previous highs would still give you hundreds of pips, so a bit of waiting wouldn’t hurt for this setup.
If you’re one of them dollar bears or Loonie bulls, though, then you could also wait for a clear break below the trend line support before you execute your breakout plays.
As usual, make sure you’re practicing your best risk management moves whichever bias you choose to trade!