GBP/AUD is trading above the 1.9400 handle, which lines up with an ascending channel support that has been keeping the bears in check since December.Can the bulls defend the trend line for another time this week? Take note that, aside from the channel support, the 100 and 200 SMAs are also hanging out near GBP/AUD’s current levels.
Buying at the first signs of bullish momentum would give you a good reward-to-risk ratio especially if you place your stops just below the trend line support and aim for previous highs near 1.9800.
Not feelin’ like buying the pound against the Aussie? You can also wait for a break below the channel that we’re watching and trade a potential break down to the 1.9200, 1.9100, and 1.8900 previous support levels.
Here’s another one for the trend warriors out there! AUD/USD is heading fast towards the .6750 area, which is right smack at a broken support level on the daily time frame.What makes the setup interesting today is that .6750 is also around a trend line that has been serving as resistance since January 2019. Now that’s commitment!
The cherries on top of this sweet setup is that a retest of .6750 would also put AUD/USD near a 50% Fib retracement and the 100 and 200 SMAs.
Can AUD/USD extend its downtrend? The pair still has a couple of pips to go before hitting .6750, so y’all have time to design your trading plans.
Shorting at a retest of .6750 could make for a good trade especially if AUD/USD drops back down to its 2020 lows.
Feel like AUD/USD’s upswing can break above the trend line? You can also wait for an actual break above the trend line and aim for previous areas of interest near .7000 or .7200 instead.