Happy Friyay, errbody!
Today we’re looking at not one, but TWO trend retracemment plays before the week ends.
What do you think of AUD/USD and GBP/JPY‘s charts?
AUD/USD: 4-hour
I don’t know if you’ve noticed, but AUD/USD has been trading in a lowkey downtrend since mid-May.
What makes AUD/USD’s chart interesting today is that its current prices have reached the .7750 level that lines up with the trend line resistance on the 4-hour time frame.
Can the bears keep up the pressure in the next trading sessions?
Selling at current levels is a good plan if you believe that AUD/USD will fall back down to its .7650 June lows.
If you’d rather buy the Aussie against the dollar, though, then you can do it as soon as AUD/USD breaks above the resistance that we’ve marked. The .7800 handle is a legit profit target but you can also aim for .7890 in case we see a strong bullish momentum.
GBP/JPY: 4-hour
Who’s up for trading yen crosses?
GBP/JPY may have broken below a key trend line support, but the bulls eventually stepped in as soon as the pair reached the 154.50 minor psychological level, previous resistance area, and 61.8% Fib.Did GBP/JPY really go back to its uptrend? You can buy at current levels and aim for May’s highs if you’re confident that the pound just had a bad couple of weeks and will eventually return to its uptrend.
Not convinced that GBP/JPY has room for more upside moves? Keep your eyes peeled for new June lows and a break below the 200 SMA, which could lead to a longer-term downtrend for the pound.
