Aussie traders huddle up!
Today we’re lookin’ at not one but TWO long-term setups on the comdoll.
EUR/AUD is fast approaching the 1.6100 major psychological handle, which lines up with a support level that hasn’t been broken this year.What makes the daily chart more interesting is that Stochastic is already flashing an “oversold” sign for the pair.
Think we’ll soon see the euro bounce against the Aussie?
Aussie bulls can wait for an actual retest of the 1.6100 levels before buying to maximize the reward-to-risk ratio of a potential bounce.
The bears, on the other hand, can take advantage of the current downswing and short the euro at current levels until EUR/AUD finds support on the lower time frames.
Whichever bias you end up trading, make sure you’re sticking to your trading plans like yo momma told you to do it!
I spy with my eye a head and shoulders pattern in the making!See, AUD/NZD is still finding support at the 1.0600 “neckline” even as it finds resistance at head and shoulder-like highs.
If 1.0600 holds as support, then you might want to watch out for a retest of the 1.0800 “shoulder” levels. This could complete the pattern and lead to a breakout below 1.0600.
If Aussie bears get enough momentum without a retest of the 1.0800 MaPs, then you can trade the breakout and aim for retests of the 1.0450 and 1.0300 potential inflection points.
Good luck and good trading this one!