Who’s ready to trade the U.S. dollar?
Check these out:
If those aren’t enough to get you planning trade plays, then you should know that there’s also a hidden bearish divergence on the chart.
AUD/USD has reached the .7560 zone, which is right around a trend line AND 100 SMA retest on the 4-hour time frame.
Will AUD/USD extend its downtrend? Shorting at current levels is your best bet if you believe that the trend line would keep the bulls at bay. June’s lows is a good initial target though you can also aim for inflection points like 1.3680.
If you’re more comfortable buying the comdoll against the dollar, then you can also wait for a clear break above the 100 SMA and June 25’s highs before thinking about targeting the .7700 area of interest.
Where my range-trading brothas at? GBP/USD just bounced from the 1.3725 range zone that hasn’t been broken since the start of the year.This time around, Cable is also sporting a bullish divergence with the oscillator sporting higher lows while price makes lower lows.
Buying at current prices would still give you a good risk ratio especially if you place your stops just under the 200 SMA and you aim for the range resistance near the 1.4200 MaPs.
Meanwhile, pound bears would have to wait for a break below the range to short the currency. Make sure there’s momentum in the breakout so you don’t get stuck in a fakeout!