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Whattup, forex warriors!

We’re starting this week’s batch of charts with a range bounce on EUR/USD and a sweet triangle pattern on AUD/JPY.

Check them out, yo!

EUR/USD: 1-hour

EUR/USD 1-hour Forex Chart
EUR/USD 1-hour Forex Chart

Unless you’ve been too busy growing your own produce, then you’ll know that EUR/USD has been trading on a 200-pip range since late June.

The bulls are in play today as EUR/USD looks like it’s bouncing from the 1.1720 range support.

The pair is already 50 pips from the support but you can still sneak in a pip or two (or a hundred) by buying at current levels and targeting the big 1.1900 resistance.

If you’d rather short the common currency against the Greenback, however, then you can also wait until EUR/USD pauses from its current momentum and then pounce as soon as you think the currency pair will drop back down to the 1.1700 area.

Whichever bias you end up trading this week, make sure to mind your reward-to-risk ratios and risk management habits when executing them trading plans!

AUD/JPY: 4-hour

AUD/JPY 4-hour Forex Chart
AUD/JPY 4-hour Forex Chart

Triangle alert! AUD/JPY is poppin’ up higher lows while maintaining 76.75 as resistance on the 4-hour time frame.

Are we in for an ascending triangle breakout?

If AUD/JPY trades as the chart pattern suggests, then we’ll see AUD/JPY break above 76.75 and probably rise by 400 or so pips (the height of the base of the triangle).

But price action is not usually that simple. Remember that triangles represent indecision, which means that AUD/JPY can still break in either direction.

If AUD/JPY traders choose the not so “basic” route, then we could see the Aussie break below the trend line AND the 100 and 200 SMA support on the chart.

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