It’s a comdoll party on today’s canvas, as we check out what’s up on AUD/CAD’s triangle and AUD/NZD’s previous resistance:
AUD/CAD has taken a coupla weeks’ worth of breather after trading on a downtrend for most of Q2 and a bit of Q3.
Is the Aussie ready for a reversal? An ascending triangle on AUD/CAD’s 4-hour time frame says it could happen.
The pair just bounced from the .8900 major psychological handle, which lines up with a rising trend line that has been supporting AUD/CAD since late September.
But wait, there’s more! Are you also seeing the bullish divergence that I’m seeing?
Buying at current levels would give you a fantastic reward-to-risk ratio especially if you’re betting on a reversal that would take AUD/CAD above the .9025 triangle resistance and near the .9200 previous area of interest.
If you think that AUD/CAD could still sustain its downtrend, then you could wait for a break below the triangle support that we’re watching and aim for the .8850 lows or even new 2019 lows.
So, which way do you think AUD/CAD will go?
AUD/NZD: DailySupport alert! AUD/NZD looks ready to bounce from the 1.0700 major psychological handle that also lines up with a broken long-term range resistance.
We know that 1.0700 has held as support at least once after breaking as a resistance. But can the bulls defend the level for another day?
Stochastic isn’t much help as it chills juuust above the oversold territory. That means you gotta wait for a bit of momentum to confirm a potential direction!
A long trade above October’s highs could still get you decent pips especially if the Aussie ends up making new 2019 highs against the Kiwi.
Wanna bet on more Aussie weakness instead? You can also draw a low key falling trend line along September and October’s highs and then wait for a short trade that would rake in pips if AUD/NZD drops below 1.0700 and goes back to its longer-term range.