Whattup, forex brothas! Today we’re lookin’ at not one, but TWO major dollar swing trades.
Retest alert! USD/JPY is currently flirting with the 108.50 psychological area, which lines up with a 38.2% Fibonacci retracement AND an area of interest for the pair on the 4-hour time frame.
Are we looking at a break-and-retest situation over here? Shorting at current levels would give you a good reward-to-risk ratio especially if you believe that USD/JPY is just getting started with its bearish momentum.
If you’d rather trade a “fakeout” play, however, then you might want to wait for the pair to consistently trade above 108.50 and aim for a potential move back up to the 109.50 December highs.
Good luck and good trading this one!
Remember the downtrend play that we spotted a coupla weeks back? Well, it looks like the bulls had enough support to break above the trend line!
What makes the chart interesting today is that AUD/USD is heading back to the .6850 – .6900 area. That’s around the 200 SMA, broken down trend line, AND a mid-channel support of a low key ascending channel on the daily!
Before you buy the Aussie like there’s no tomorrow, you should note that the current downside momentum hasn’t let up just yet. That means y’all gotta watch for a better buy price in case AUD/USD dips below .6850 before seeing bullish momentum.
If you’re convinced that AUD/USD is set to extend its 2019 downtrend, however, then you could short AUD/USD as soon as it breaks below the channel support on the chart. That’s at least a hundred pips away, but what’s a hundred or so pips if you’re aiming for a longer-term move, amirite?