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Who’s up for trading short-term setups today?

I hope you are because we’re having a currency cross fiesta with GBP/JPY and AUD/CAD‘s charts!

Check out these retracement and reversal opportunities!

GBP/JPY: 1-hour

GBP/JPY 1-Hour Forex Chart
GBP/JPY 1-Hour Forex Chart

After rising by about 500 pips since last week, GBP/JPY looks ready to take a breather.

Of course, it helps that there’s a low key head and shoulders pattern on the 1-hour time frame, with the current prices flirting near the “neckline” support.

A clear break below the 136.00 major psychological handle could drag the pound by 115 pips, which coincides with the height of the head part of the pattern to the base. That’s also near the 100 SMA on the chart!

If the bulls manage to find more friends before we see a downside breakout, however, then GBP/JPY could revisit its weekly highs near 137.25.

Whichever bias you choose to trade today, make sure you know what GBP/JPY’s average volatility is so you don’t get stopped out by any “wild” moves, mmmkay?

AUD/CAD: 1-hour

AUD/CAD 1-Hour Forex Chart
AUD/CAD 1-Hour Forex Chart

AUD/CAD found resistance at the .9400 psychological handle and now looks set to test a trend line support that hasn’t been broken since last week.

What makes the setup more interesting today is that the pair’s current levels also line up with descending triangle support.

That means that a downside breakout could drag the pair by 100 pips down to the 200 SMA on the 1-hour time frame.

What do you think? Will the trend line support hold for another day? Or can the bears drag the Aussie back down to the 200 SMA?

For Aussie bulls, do you think we’ll see enough pressure to force an upside breakout instead? If the Aussie does pop higher, then we could see a retest of this week’s highs near .9400.

Forex Chart Settings:

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