Welcome to mid-week trading, errbody!
Check them out before you draft your trading plans!
AUD/USD looks ready to turn lower after hitting resistance below .7850.And why not? As you can see, AUD/USD got rejected at the trend line support that the pair had broken last week. What’s more, it’s also near the 100 SMA that just crossed below the 200 SMA!
Aussie bears who think that the trend line resistance would hold can start placing them short orders at current levels and aim for retests of last week’s lows.
Market bulls, on the other hand, can watch out for AUD/USD poppin’ up above the trend line, 200 SMA, and .7850 resistance levels before targeting inflection points like .7900 and .8000.
If you feel like range trading instead, then you’re gonna love what’s happening on GBP/JPY’s 1-hour time frame.See, the pound is still finding resistance at the 149.20 area that lines up with a 105-pip range ceiling.
Sweetening the pot for the bears is Stochastic hinting at a bearish divergence on the chart.
Shorting at current levels would give you the best risk ratio if you believe that GBP/JPY is going to drop to its 148.15 range support.
But what if the SMAs hold as support and cause an upside breakout?
Keep an eye out for a clear break above 149.20, which could lead to the pound revisiting its February highs just below 150.50.