I hope you’re in the mood to trade the Aussie because we’ve got not one but TWO Aussie setups today!
AUD/USD looks ready for an SMA crossover while EUR/AUD is having trouble printing new highs.
Which pair do you think will extend its trend?
If you’ve been watching AUD/USD’s 1-hour chart, then you’ll know that the 100 SMA crossing over the 200 SMA has correctly called the last three short-term reversals for the Aussie.And look at that! The 100 SMA looks ready to cross above the 200 SMA again! What’s more interesting is that it’s happening just as AUD/USD is forming a potential Rounding Bottom pattern under the .7300 zone.
Is AUD/USD ready for an uptrend? If the Aussie trades and stays above .7300 in the next couple of trading sessions, then you gotta be ready to trade a possible upswing that could take AUD/USD all the way to .7450.
If Aussie bears manage to keep the shenanigans below the .7300 psychological level, though, then you should also plan for a range-type price action that could drag AUD/USD back to its September lows.
If trend continuation is more your thing then you should…turn away.
EUR/AUD may still be supported by a trend line support but the euro bears are kicking forex butt around the 1.6200 – 1.6400 zone.Now that there’s a Head and Shoulders action going on in the daily chart, you can bet that at least some more euro bears are watching.
If you see EUR/AUD trade below 1.5900, it means that the euro has broken below its trend line, 100 SMA, and Head and Shoulders “neckline” support on the daily. Yikes!
EUR/AUD may drop all the way down to the 1.5600 levels.
If euro bulls decide to take advantage of the trend line support, however, then you can also plan for trades that would profit if EUR/AUD reaches its August highs.
What do you think? Which way will EUR/AUD go?