Comdoll traders huddle up!
Which comdoll pair would you rather trade?
First up is a nice and simple double bottom setup on NZD/JPY’s 1-hour time frame.The pair has found support at the 75.60 levels TWICE this week, but it looks like the bears are determined to hold the 76.00 psychological handle as resistance.
Will we see a double bottom breakout this week?
Bulls can buy the Kiwi as soon as NZD/JPY pops (and stays!) above the 76.00 levels. The height between this week’s lows and the double bottom “neckline” is about 50 pips, so make sure to factor that if you’re planning on trading an upside breakout.
But what if 76.00 holds as resistance? Bears can also play a range game and short at current levels if they’re confident that NZD/JPY will dip back down to this week’s lows.
If you feel like trading swing trades instead, then you’re gonna love that AUD/JPY is respecting a 225-pip range on the 4-hour time frame.In fact, the Aussie is currently chillin’ like a villain just above the 82.50 range support while Stochastic is flashing an “oversold!” signal.
A long trade at current levels would make for a good reward-to-risk ratio especially if AUD/JPY jumps back to its 84.75 range resistance highs.
A break below the current consolidation and range support, on the other hand, could send the Aussie down to previous inflection points near 82.00.
Good luck and good trading this one!