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Whattup, forex brothas!

Whether you like trading them comdoll majors or you’re more into currency crosses, you’re gonna see hot setups today when I tell you what’s up on AUD/USD and GBP/JPY‘s charts.

Check them out!

AUD/USD: 1-hour

AUD/USD 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

AUD/USD looks ready to jump from the .7150 zone, which lines up with a trend line that has been keeping the bulls entertained since late September.

What makes the upswing interesting this time around is that it started when AUD/USD hit a 61.8% Fib retracement on the 1-hour time frame.

Is AUD/USD ready to extend its uptrend? Buying at current levels would still give you a good reward-to-risk ratio especially if the Aussie makes new highs against the dollar in the next couple of trading sessions.

Not ready to buy the comdoll against the safe-haven dollar just yet? That’s aight, you can also wait for a clear break below the trend line and then plan for potential retests of the .7100, .7075, or .7020 previous areas of interest.

GBP/JPY: Daily

GBP/JPY Daily Forex Chart
GBP/JPY Daily Forex Chart

One week ago we talked about GBP/JPY possibly finding resistance near a broken channel support.

Well, the pound bears weren’t ready to pounce just yet. But they sure have more incentive to do it today!

For one thing, the pound turned lower from the 137.50 minor psychological handle, which is right smack at a 50% Fib retracement AND the broken channel support that we talked about.

In addition to that, a bearish divergence has formed on the daily time frame since we last visited the setup.

Will the pound lose more pips against the yen? Shorting at current prices would still make for a good trade if GBP/JPY ends up dropping below September’s lows and you place your stops just above October’s highs.

If you’re betting on the pound making pips rain against the yen, though, then you’ll want to at least wait for Guppy to make new October highs and then make trading plans for a possible trip up to the .7240 previous highs.

Forex Chart Settings:

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