Happy Friday the 13th, yo! See if you can get lucky with these hot swing trade opportunities on EUR/USD and AUD/USD. Check them out!
EUR/USD is a few pips away from the 1.1100 handle, which is not far from a descending trend line that has been keeping the bulls in check since late June.
What makes the chart interesting today is that the trend line also lines up with the 200 SMA on the 4-hour time frame. Not only that, but we could be looking at a bearish divergence in the making!
Before you sell the euro like there’s no tomorrow, you should note that the euro’s bullish momentum has yet to show weakness.
If the bulls maintain their momentum, then EUR/USD could break above the trend line and revisit a previous resistance level near 1.1225.
If euro bears manage to take control of the pair, however, then the euro could drop back to yesterday’s lows near 1.0925.
Which way do you think EUR/USD will go?
Remember that area of interest that we were watching last week? Well, it’s go time for Aussie bulls and bears!
AUD/USD is poppin’ up interesting dojis around the .6850 zone, which lines up with a previous support, the 100 SMA, AND a 50% Fibonacci retracement on the daily chart.
Are the doijs signaling a continuation for Aussie’s downtrend? Shorting at the first signs of bearish momentum would give you a good reward-to-risk ratio especially if you aim for the previous lows near .6700 and place your stops just above the 100 SMA.
If you think that the Aussie will still see strength before the bears take over, then you could also wait for a a retest of the 200 SMA closer to the descending channel’s resistance.
Finally, if you’re one of them Aussie bulls and would like to trade a reversal, then you could buy at a break above the 100 SMA and aim for the 200 SMA. Similarly, you could also buy AUD/USD once it breaks above the channel that we’re lookin’ at.