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Today I’m serving up a simple support trade on EUR/USD and a potential break and retest situation on AUD/JPY. Get ’em while they’re hot!

EUR/USD: 4-hour

EUR/USD 4-hour Forex Chart
EUR/USD 4-hour Forex Chart

First up is a basic support setup on EUR/USD’s 4-hour chart. See, the pair is chillin’ like a villain at the 1.1000 major psychological handle that’s been limiting the bears’ momentum since early October.

Is EUR/USD in for a bounce? Stochastic certainly suggests so with its oversold signal.

Buying at the first signs of bullish momentum would get you a nice reward-to-risk ratio especially if the euro bounces to previous areas of interest like 1.1100 or 1.1200.

If you’re still firmly on euro bear camp, however, then you might want to wait for a clean break below 1.1000 before you execute them short trades. 1.0950 and 1.0900 are low key support areas to watch if you’re shorting the euro against the dollar.

AUD/JPY: Daily

AUD/JPY Daily Forex Chart
AUD/JPY Daily Forex Chart

Looks like AUD/JPY broke below the ascending channel that we checked out a coupla days ago! Question is, is the “breakout” legit?

Break and retest traders would want to know that AUD/JPY is currently having trouble trading above 74.00, which is near the broken channel support and a 50% Fib retracement on the daily time frame.

Watch this one closely, yo! If AUD/JPY finds resistance at the level, then we could see the pair drop back down to its previous lows near 72.50. Heck, it might even make new February lows!

If AUD/JPY blasts above the Fib retracement and SMA resistance levels, however, then Aussie bulls could gain enough momentum to retest 75.30 or 76.00 previous resistance levels.

Good luck and good trading, forex warriors!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line