Welcome to a brand spankin’ new trading week, forex friends! Whether you like trading the majors or currency crosses, I got back with these hot opportunities on USD/JPY and EUR/AUD. Check it!
Resistance alert! USD/JPY is having trouble trading above the 107.25 area, which isn’t surprising since it lines up with a broken support level AND the 50% and 61.8% Fibonacci retracement areas on the daily time frame.
Are the bears about ready to pounce? The overbought stochastic signal also doesn’t hurt.
Shorting at the earliest signs of bearish momentum is a good play if you’re betting on USD/JPY dropping back to its lows near 105.00.
If you’d rather buy the dollar against the yen, though, then you might want to wait until USD/JPY breaks above the current resistance as well as the SMAs before you pull the trigger.
Whichever bias you choose to trade, remember that yen pairs and longer time frames like these tend to see higher volatility than other major dollar pairs. That means y’all gotta mind your stop losses if you’re planning on trading this one!
Here’s one for the trend traders out there! EUR/AUD is flirting with the 1.6100 area, which is right smack at the 200 SMA on the daily time frame.
What makes the potential support interesting today is that it’s also around an ascending channel support that hasn’t been broken since June.
Can the bulls extend EUR/AUD’s uptrend? Buying at current levels would give you a good reward-to-risk ratio especially if you place your stops just below the channel and aim for the previous highs near 1.6600.
Not a fan of the euro? That’s aight with me, too. Keep your eyes peeled for a potential break below the channel and make a play for potential moves back to the 1.5700 or even 1.5450 previous support areas.