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Comdoll traders gather ’round!

Today we’re checking out AUD/USD‘s uptrend and a possible trend continuation play on EUR/CAD.

Don’t even think of missing these setups, yo!

AUD/USD: 4-hour

AUD/USD 4-hour Forex Chart
AUD/USD 4-hour Forex Chart

AUD/USD is about 20 pips above the .7220 level, which was right smack at an ascending channel and 200 SMA support on the 4-hour time frame.

What makes the pair interesting today is that it looks like it’s gaining bullish momentum just as Stochastic is flashing a bullish divergence.

Can AUD/USD extend its uptrend? Buying at current levels would still get you a decent reward-to-risk ratio especially if the Aussie makes new September highs against the dollar.

If you’d rather buy the Greenback against the comdoll, however, then you’ll just have to wait for a break below the SMAs AND the trend line support that has been containing the bears since late July.

What do you think? Where will AUD/USD go next?

EUR/CAD: Daily

EUR/CAD Daily Forex Chart
EUR/CAD Daily Forex Chart

I spy with my eye a hot cup and handle on EUR/CAD’s daily!

For newbies out there, a Cup and Handle is a bullish continuation pattern that usually pops up in higher time frames after a strong breakout.

One way to trade the chart pattern is to buy as soon as the price breaks above the “handle” that represents the downswing action marked on the chart.

If you’d rather wait for confirmation on the bullish trend, then you can also place orders above the “rim” of the cup, which in this case lines up with the 1.6000 major psychological handle.

Cup and handle breakouts are usually as strong as the distance between the “bottom” and the “rim” of the cup. That’s about 900 pips, yo!

Not convinced that there are EUR/CAD bulls left? You can also trade the current downtrend or maybe place orders below the halfway point of the cup.

Whichever bias you end up trading, make sure you’re aware of EUR/CAD’s average daily volatility so you don’t expect to gain (or lose) bajillions of pips in one day!

Forex Chart Settings:

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