We’re lookin’ at the Aussie today, yo!
Let me know what you think!
EUR/AUD is knocking on the 1.6400 major psychological level, which is right smack at a 1-hour range resistance that has been keeping the bulls at bay since early June.What makes the setup more interesting today is that Stochastic is chillin’ like a villain on the overbought territory. Not only that, but there’s a low key bearish divergence if you stretch your 1-hour charts a bit!
Will the euro see weakness against the Aussie before the week ends? Shorting at the first signs of bearish pressure will yield the best reward-to-risk ratio especially if EUR/AUD drops back down to its 1.6125 range support.
If you’re convinced that the euro will extend is uptrend against the Aussie, however, then you can also wait for a clear break above 1.6400 and then aim for previous areas of interest near 1.6450 and 1.6550.
I spy with my eye a double top in the making!
For newbies out there, you should know that double tops can lead to reversals as tall as the distance between the “tops” and the “neckline.”In this case, we’re looking for a break below the 73.00 neckline to confirm a potential reversal.
AUD/JPY still has a few pips to go before hitting the 73.00 mark, though, so y’all still have time to make trading plans.
Will AUD/JPY trade lower? Or will Aussie bulls push it back up to make new 2020 highs?
Whichever bias you end up trading, make sure to keep one eye on AUD/JPY’s average volatility for your entries and stops!