Welcome to the last trading day of the week, errbody!
Still looking for setups to trade?
AUD/CAD looks like it’s headed for the .9400 major psychological handle, which is right under the channel resistance that has been limiting the bulls’ momentum since mid-September. Not only that, but .9400 is also near the 100 SMA on the 4-hour time frame!Will .9400 hold as resistance this time? AUD/CAD is still one or two (or thirty) pips away from .9400 so y’all have time to design trading plans if you’re planning on trading the pair’s downtrend.
A short trade at the first signs of a bounce from .9400 would yield a good risk ratio especially if you place your stops just above the SMAs and AUD/CAD ends up making new October lows.
Not convinced that the Aussie can weaken another day against the Loonie? You can also wait for a break above the channel and the 100 SMA and then target previous inflection points like .9460 or .9500 if you’d rather bet on an upside breakout.
Good luck and good trading this one!
Here’s one for the euro fans out there! EUR/AUD has stopped its sharp downswing at 1.6550, which is right smack at a major range resistance that was broken a few days ago.Are we looking at a break-and-retest setup over here? I know that Stochastic is already flashing an “oversold” signal on the 4-hour time frame.
If EUR/AUD bounces from its previous resistance level, then we could see the euro retest its October highs near 1.6800.
If the bears get fresh momentum, however, then the euro could drop back inside the range and head for the 1.6500 levels near the 100 SMA, 1.6400 handle near the 200 SMA, or the 1.6350 zone closer to its mid-range levels before the bulls get some pips in.
Whichever direction you end up trading, make sure you know all about EUR/AUD’s average daily volatility so you don’t get stopped out when the euro or Aussie gets spikey during volatile trading sessions.