What’s crackin’ Big Pippers!
Starting off the week with a mix of setups, first an uptrend setup and then a potential breakout / trend reversal play.
AUD/JPY bulls have been riding higher since November, and it looks like today’s drop to the 100 SMA was just another opportunity to play that trend.
But we can see a bit of divergence between price action and stochastic as the latter makes lower ‘highs’ opposite a slightly higher ‘high’ in price.
Is this a short-term top or will we see AUD/JPY drop back lower before the end of the week?
If you think we will see another drop ahead, watch out for potential support at the rising moving averages and the rising trendline for a potential long opportunity.
EUR/NZD price action has been tightening up since the beginning of the month, slowly closing up around the 1.7150 handle, creating a symmetrical triangle along the way.
But the market just broke to the upside, and it looks like the 100 SMA is about to break above the 200 SMA…could this be a big trend reversal in the works?
Watch out for the falling ‘highs’ of the triangle to create potential support / bullish reversal candle patterns before considering a long position, as well as the stochastic indicator to signal short-term oversold conditions.