Whattup, forex playas! I’m trying out something new today.
I’m now on a plant-based diet.
I’m tryin’ out MarketMilk™ yo! Check out how it helped me with AUD/JPY and AUD/NZD’s setups.
AUD/JPY looks ready to drop from the 72.50 area, which isn’t surprising since it lines up with a falling trend line resistance AND the 200 SMA on the 1-hour time frame.
Is AUD/JPY ready to extend its downtrend?
A quick glance at AUD/JPY’s MarketMilk™ performance tells us that the pair is in a long-term bearish trend. It’s still positive on a daily and weekly basis, though, which could translate to opportunities to jump on the downtrend at cheaper prices.
Shorting at the earliest signs of bearish momentum is a good idea if you believe that AUD/JPY will see new October lows this week. Of course, you can also aim for the 71.75 previous support if you’re not too confident about the Aussie dropping to new lows.
Meanwhile, a convincing break above the trend line could lead to a retest of the 73.25 area of interest. If the pair hits the previous range resistance and the 100 SMA crosses above the 200 SMA, then we could see a short-term reversal for the Aussie.
It’s getting closer! A couple of days ago we talked about AUD/NZD possibly hitting retracement areas after breaking above a long-term range but missing the 1.0900 mark.
Aussie bulls better get ready cause it’s almost game time! The pair is about 30 pips away from the 1.0650 previous range resistance, which is also just above a 38.2% Fib retracement on the daily chart.
I’m not seeing a legit consolidation or a bullish momentum yet, so it looks like y’all have time to whip up trading plans if you’re planning on trading this one.
Just make sure to use wide stops, aight? As you can see in AUD/NZD’s MarketMilk™ volatility snapshot, the pair tends to move by about 50 pips on either direction on Tuesdays and more than 60 pips on Fridays. That means you gotta use stops that are wider than that to trade the daily time frame setup!