We’re lookin’ at the Aussie today, folks! Check out AUD/JPY and AUD/CAD’s charts and see if you can grab pips from a potential break and retest and a breakout setup!
AUD/CAD just breached the .9050 handle, which lined up with the ceiling of a consolidation that formed after a strong downtrend.
Are the tides changing for AUD/CAD? Not only has the pair broken above a short-term range, but the 100 SMA also looks ready to trade above the 200 SMA. And as you can see, the last time we saw an SMA crossover was before the pair dropped by a bajillion pips.
Buying at a confirmation of the SMA crossover or a retest of the broken range resistance are good plays if you think that we’re looking at a legit “breakout.” Just watch out for the .9100 area of interest that could serve as resistance!
If you’re not convinced of a trend reversal just yet, then you could also wait until the pair drops back to the range and aim for the .8925 previous range support instead.
Whichever bias you’re trading today, make sure you bring your best risk management practices on the table, ya hear?
Here’s a simple S&R play for ya!
AUD/JPY is having trouble trading above 74.50, which isn’t surprising since it lines up with a broken support on the daily time frame.
If that’s not enough to attract some bears, note that the 100 SMA is also hovering above the psychological area like Beyoncé on Jay-Z.
Is it time for the Aussie to go back to its downtrend? Shorting at the earliest signs of bearish momentum could give you a good reward-to-risk ratio especially if you place your stops above the 100 SMA and aim for the previous support near 72.00.
If you’d rather bet on further gains for the Aussie, however, then you might want to wait until the pair breaks above 74.50 and the 100 SMA before you pull the trigger on your long trades.