What’s up with the comdolls these days?
Check them out!
First up is a nice continuation play for y’all.
AUDJPY has found resistance just under the 81.00 handle and it looks like it’s headed for the Fib areas.The 61.8% Fib level is particularly interesting because it lines up with the 100 and 200 SMAs and it’s also around a trend line support that hasn’t been broken since mid-2020.
Aussie bears still have a long way to go before hitting them potential support zones, though, so bears can take advantage of the current bearish momentum and short the Aussie until it hits the nearest inflection points.
Meanwhile, the bulls can play the waiting game and set some orders around the Fibs. If AUD/JPY doesn’t hit the 6.18% Fib before seeing some support, then maybe you can jump in on the longer-term uptrend as soon as you see sustained bullish pressure.
Good luck and good trading this one!
NZD/USD is chillin’ inside what looks like a bullish pennant after seeing a strong run in the last months of 2020.
Pennants are usually continuation patterns, which means NZD/USD will more likely extend its uptrend.If you also think that the Kiwi isn’t done gaining on the dollar just yet, then you can take advantage of the current trend line support retest on the daily time frame.
Stops just below the trend line would yield a good reward-to-risk ratio in case NZD/USD ends up making new 2021 highs in the next coupla weeks.
Before you place your long orders like your broker will limit transactions out of “an abundance of caution,” though, you should know that the current momentum is favoring the bears and that we could still see a downside breakout and maybe even a reversal for NZD/USD.
Once NZD/USD trades and stays below the pennant pattern, then you can whip out your breakout playbooks and prepare for possible trips to the .7000, .6900, or .6800 previous areas of interest.