This downtrend look familiar to you?
If it does, it’s only because we checked it all the way back last…Friday.
Back then we thought that the combo of 61.8% Fib, descending trend line, and the looming 100 SMA on the 1-hour time frame would attract some bears.
Guess euro bulls were hungrier this week! As you can see, EUR/AUD broke above the trend line AND the 200 SMA. Not only that, but it had already retested the broken trend line and it looks like it’s on its way up.
Is EUR/AUD about to see a longer-term reversal? MarketMilk certainly thinks so. Aside from the overall indicator churning out a “bullish” signal, the pair is also bullish on ALL 1-hour trend indicators on the page.
Buying at current levels is a good play if you’re one of them euro bulls. You could aim for the 1.6150 or 1.6200 previous areas of interests in the short term, and maybe aim for the 1.6300 levels if you’re feeling confident.
Not convinced that EUR/AUD is turning higher? You might want to wait until the pair drops below the trend line before you pull the trigger on your short trades.
Here’s one for the dollar playas out there!USD/JPY is a stone’s throw away from the 110.00 major psychological level, which is significant enough even if the area doesn’t also line up with a 61.8% Fib and a descending channel resistance that has been solid since September 2018.
The cherry on top is a low key bearish divergence on the daily time frame. Talk about a sweet deal!
Shorting at the earliest signs of bearish momentum would get you in at a good price if USD/JPY drops back to its August lows.
If you’d rather buy the dollar against the yen, however, then you could also wait for a break above the 110.00 MaPs and execute your best breakout or break-and-retest plays.
Good luck and good trading this one, yo!