Welcome to the middle of the week, forex friends! Today we’re lookin’ at not one, but TWO comdoll-related charts. Check them out!
Trend alert! USD/CAD is gaining bearish momentum after hitting a road block at the 1.3090 descending channel resistance.
Think the dollar will continue to tank against the Loonie?
Shorting at current levels could still get you a pip or two (or fifty) especially if you aim for the previous lows near 1.3020 and place your stops just above the channel.
If you don’t believe that the dollar will lose any more pips, though, then you could also place some orders above the channel and get ready for a potential breakout that might hit the 1.3135 previous area of interest.
Good luck trading this one!
Remember that resistance level that we spotted on the 4-hour chart a while back? Well, it looks more promising on the daily!
See, if you squeeze your charts just right, then you might see a potential reverse head and shoulders pattern in the making.
Unless you’ve skipped some School of Pipsology pages, then you’ll know that patterns like these usually lead to upside breakouts. No guarantees, though!
A break above the 76.00 “neckline” and major psychological handle could push the Aussie all the way to the 77.50 previous support level.
A trip below July’s lows, however, could drag AUD/JPY back down to the “head” part near 74.00 or even make new lows.
What do you think? Which way will AUD/JPY go?