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Welcome to a brand-spankin’ new trading month, yo!

Let’s hit the ground running by checking out how GBP/AUD and EUR/AUD are sitting on key support and resistance levels.

What do you think of these setups?

EUR/AUD: 1-hour

EUR/AUD 1-hour Forex Chart
EUR/AUD 1-hour Forex Chart

EUR/AUD is testing the 1.6200 major psychological level, which marks the “neckline” of a double bottom pattern that had formed when the pair found support at the 1.6150 area.

Will we see an upside breakout soon? A clear break above 1.6200 could propel the euro back to the 100 SMA or even the 1.6350 area of interest.

If euro bears go on the offensive and sell the common currency like there’s no tomorrow, however, then we could see EUR/AUD retest its 1.6150 support or even revisit previous support levels below 1.6100.

Watch this one closely!

GBP/AUD: 4-hour

GBP/AUD 4-hour Forex Chart
GBP/AUD 4-hour Forex Chart

Fakeout alert! Just when we thought that the bears have succeeded in dragging GBP/AUD below the 1.8150 area of interest, the pound bulls have renewed their efforts and are now looking for momentum.

Buying at current levels is a good bet if you believe that GBP/AUD will eventually revisit its August highs near 1.8400.

If you believe that the bullish pressure won’t last and that GBP/AUD will drop back below 1.8000, then you can also wait for the pair to make new weekly lows and then ride a downswing until the bearish momentum dies down.

Whichever bias you end up trading, make sure you know all about GBP/AUD’s average volatility, aight? You don’t want to get stopped out just before volatility becomes interesting, do you?

Forex Chart Settings:

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