Currency cross playas gather ’round!
Come take a look at today’s charts!
Less than a week ago we talked about EUR/AUD chillin’ like a Disney villain near a mid-range zone and the 100 and 200 SMAs on the 4-hour time frame.If you had bought the euro, then you would’ve gotten decent pips from EUR/AUD moving towards its September highs.
But that was last week. This time around the pair is finding resistance at the unbroken 1.6550 range ceiling. What’s more, Stochastic is waving an “overbought” signal!
Shorting at the first signs of bearish pressure would give you a good reward-to-risk ratio especially if EUR/AUD drops back down to the 1.6350 mid-range levels or even the 1.6125 range support.
If you’re one of them euro bulls, though, then you can also wait for a clear break above September’s highs and then target previous areas of interest closer to the 1.6750.
Retest alert! Guppy is consolidating around 137.00, which lines up with not only a 38.2% Fib retracement move of September’s downswing but also a broken ascending channel support on the daily time frame.Are we looking at a break-and-retest play in the making? The pound is still vibin’ just under 137.00 so y’all might want to wait for a bearish momentum if you’re betting on more weakness for the pound.
GBP/JPY’s previous lows near 133.50 is a good initial target if you’re not a fan of the pound.
If you’d rather sell the yen against the pound, however, then you should at least wait until GBP/JPY makes new October highs or at least trades comfortably back inside the channel before you aim for previous areas of interest like 139.75 or 141.75.