Welcome to a brand spankin’ new trading month, forex brothas!
Hit the ground running with not one, but TWO comdoll trends to trade today.
First up is a nice and simple retracement play on AUD/NZD’s 4-hour chart.
See, AUD/NZD is about to hit the 1.0825 area that lines up with a 38.2% Fib retracement, previous resistance, and the 100 SMA on the 4-hour time frame.
Think the bulls will step in at the retracement? The current candlestick is hinting at an initial buying at the first touch of the support zone but we gotta wait for the next candles to see if the support would hold.
A long trade at the earliest signs of a bounce would get you in at a good spot in case AUD/NZD revisits its March highs near 1.0950.
Feel like the Aussie isn’t done losing pips against the Kiwi?
You can take advantage of the current downswing and short AUD/NZD until the pair hits the trend line support closer to the 50% Fib and the 200 SMA. Heck, you might even catch a breakout below the longer-term trend line support!
If you’ve been looking at EUR/AUD, then you’ll know that the pair has been consolidating inside a symmetrical triangle after falling by bajillions (read: 1,500) pips since October 2020.
School of Pipsology readers know that triangle breakouts can see moves that are as wide as the base of triangle. More importantly, triangles can break in either direction.
A clear break above the 1.5700 major psychological handle opens EUR/AUD to a trip to the 1.5900 previous highs.
A downside break, on the other hand, will extend EUR/AUD’s downtrend and drag the common currency maybe all the way to 1.5000.
Keep close tabs on this one, yo!