Sup, errbody!
Today we’re checkin’ out a trend retracement opportunity on USD/CAD and a potential chart pattern breakout on AUD/JPY.
Interested? I’ve marked the charts for ya!
USD/CAD: 1-hour
USD/CAD is having trouble making new highs above 1.3400, which isn’t surprising since the current price is trading near a trend line resistance, previous support and resistance area, AND the 200 SMA on the 1-hour chart. Talk about the stars lining up!
Shorting at current levels would give you the best reward-to-risk ratio if you’re betting on the dollar extending its losses against the Loonie.The 1.3350 support is a good target for those who are looking for the nearest support zone though you can also bet on a new low if the momentum is solid enough.
Feel like buying the Greenback instead? You might want to wait until USD/CAD clearly breaks above the 1.3500 handle before making plays for potential visits to the 1.3550 or 1.3700 previous areas of interest.
AUD/JPY: 4-hour
How do you know when a party is winding down and it’s time to call an Uber?
When your least favorite relative shows up, that’s when.
In AUD/JPY’s case, a potential head and shoulders pattern means that some bulls are starting to bail or at least pausing from their buying.A break below the “neckline” could lead to a retest of the 73.00 handle near the 100 SMA on the 4-hour chart.
If the Aussie finds support from its current levels, however, then we could see AUD/JPY trade above the 75.25 resistance or even the 76.50 previous highs.
What do you think? Which way will AUD/JPY go?
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
