Thinking of taking off from your desks and calling it a week? Not before you check out these currency cross plays!
Today we’re checking out AUD/CAD’s downtrend and GBP/JPY retesting a key support and resistance zone.
What do you think of these charts?
AUD/CAD: 1-hour
First up is a nice and simple downtrend on AUD/CAD’s 1-hour time frame.
As you can see, the Aussie popped up a long wick and then a couple of red candlesticks right when it hit the SMAs and a channel resistance that hasn’t been broken since the start of the month.Can the Aussie extend its downtrend against the Loonie? A bearish divergence on the chart tells us that it’s possible. Watch out for momentum below the 100 SMA, which could drag AUD/CAD back down to this week’s lows.
But don’t discount an upside breakout just yet! If you see AUD/CAD trade and stay above the 200 SMA and the channel resistance that we’re eyeing, then y’all should be ready to flip biases and aim for August 15’s highs or even the .9270 inflection point.
GBP/JPY: 4-hour
In case you missed it, Guppy has broken above a descending channel and hit 153.00 levels before dropping back down below 150.00.
The pair is now testing the 149.40 zone, which is right smack at the channel resistance that it had recently broken. Not only that, but the current prices also line up with mid-July’s lows!Buying at the first signs of a bounce would make for a decent trade especially if GBP/JPY bounces back above 150.00. The 152.00 area near the SMAs is a good target though you can probably aim for 153.00 if there’s enough bullish momentum.
If Guppy extends its current downswing, however, then you should look out for a possible dip to 148.40 previous lows or even the 147.50 area of interest in the higher time frames.
