If you can’t get enough of trend trades, then you’re in luck!
I’ve spotted not one, but TWO opportunities for ya.
AUD/USD is about to hit the .7640 levels, which is right around the 100 SMA and a trend line resistance that’s been limiting the Aussie’s game since last week.And if those aint’ enough to make you look twice, then you should also know that AUD/USD is nearing a previous support level as well as the 38.2% Fib retracement of the late March downswing.
Trend traders who are expecting more Aussie weakness can short at a retest of the descending trend line area. The .7560 previous low is a legit initial target though you can also aim for new 2021 lows if you’re confident in the Aussie losing more pips against the dollar.
But what if AUD/USD busts above the trend line? Watch how the pair reacts to the 50% Fib and the 200 SMA before you target visible inflection points like the .7700 MaPs or the .7800 previous highs.
If daily charts are more your thing, then you’ll know that EUR/JPY is poppin’ up hesitation candlesticks around the 128.75 handle that’s near a trend line support and the 38.2% Fib retracement of the recent upswing.But wait, there’s more! Stochastic is also hitting them oversold regions, which opens up the possibility of a bullish divergence on the daily time frame.
Euro bulls can start scaling in their long positions and ride the long-term uptrend all the way to new 2021 highs.
Meanwhile, EUR/JPY bears would have to wait for a clear break below or even retests of the trend line before getting confident about a potential reversal.