After yesterday’s majors parade, we’re focusing on comdoll crosses today.
Check these out!
AUD/NZD is consolidating around the 1.0650 handle, which is right smack at a descending channel resistance that’s also around the 100 and 200 SMAs on the 4-hour time frame.You can short at current levels if you’re looking for a good reward-to-risk ratio on this trend. You can aim for previous lows about 100 pips away and place your stops just above this week’s highs.
If you’d rather buy the Aussie against Kiwi, however, then you can also wait and see if this consolidation leads to an upside breakout. You can buy above the channel resistance and then target previous areas of interest like 1.0750 or 1.0820.
Whichever bias you end up trading, make sure you practice good risk management moves like yo mommma told you to do it!
I spy with my eye a symmetrical triangle breakout in the making!
If you’ve read your School of Pipsology, then you’ll know that triangles like this represent indecision and that it could break in either direction.What makes today’s chart interesting is that NZD/JPY is almost at the end of the chart pattern and, if textbooks are right, then we could see a breakout that’s as big as the height of the base of the triangle. We’re talkin’ 400 pips, yo!
Think NZD/JPY is just pausing from its uptrend? The 100 and 200 SMAs just below current prices give the bulls just a tiny bit of edge in this case.
But if gravity takes over and NZD/JPY sees a reversal, then we could see the pair revisit areas of interest such as 68.25 or 67.00.