Comdoll traders huddle up!
AUD/USD is trading below a key short-term SMA while USD/CAD is forming a potential reversal candlestick pattern.
Think we’ll see reversals for these major comdoll pairs?
In case you missed it, AUD/USD has been on a steep uptrend since late September.What makes the pair interesting today is that it’s trading below the 100 SMA, which hasn’t happened since after the last moving average crossover on the 1-hour time frame.
Are we looking at the early signs of a reversal?
Watch how AUD/USD reacts to the 100 SMA. If it starts trading above the dynamic moving average, then AUD/USD may retest October’s highs.
But if AUD/USD gets rejected at the 100 SMA, then you can probably eye the 200 SMA or .7425 previous area of interest as your entry or exit levels.
I spy with my eye a potential Reverse Head and Shoulders situation!USD/CAD has been on a notable downtrend since mid-September but the bears are having trouble dragging the dollar below the 1.2300 – 1.2350 support zone.
A break above the 1.2385 neckline could mean a 100-pip move to the 1.2500 previous consolidation area or the 100 SMA on the 4-hour time frame.
Of course, it’s possible that the bears are just taking a breather. If USD/CAD drops below the “shoulder” level of the candlestick pattern, then you gotta be ready for a possible dip to new October lows.