After focusing on the comdolls yesterday, we’re setting our sights on the European crosses today.
Let me know what you think of these setups!
Breakout alert! EUR/AUD looks ready to trade firmly above a trend line resistance that the bulls haven’t conquered since late December.
If the euro makes new January highs in the next few hours, then our trend line break may also turn into a double bottom breakout.The School of Pipsology tells us that double bottom breakouts can be as strong as the distance between the bottoms and the “neckline.” That’s around 170 pips, yo!
The cherry on top of this sweet sundae is the 100 SMA possibly crossing above the 200 SMA and giving euro bulls more courage to buy the common currency against the comdoll.
If you think that the trend line “breakout” is actually a fakeout, though, then you can also wait for a bounce from the neckline and then aim for EUR/AUD dropping back to its January lows.
Guppy can’t seem to break above the 142.20 handle, which has now become a resistance to the ascending triangle pattern on the pair’s 4-hour time frame.But wait! I’m not seeing bearish momentum after GBP/JPY got rejected at 142.20, which means that the bulls can still make a play for an upside breakout.
Pound bears who believe that the resistance will hold until we get another trend line support retest can short at current levels and place stops just above the resistance.
Meanwhile, bulls who think that GBP/JPY will follow its more obvious uptrend can wait like my dude Bernie Sanders over at the triangle resistance for the earliest signs of a breakout.
Whichever bias you end up trading, make sure to follow your trading plan like Tiktok’s Maren Altman told you to do it!