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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?

AUD/USD: 1-hour

AUD/USD 1-hour Forex Chart
AUD/USD 1-hour Forex Chart

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.

USD/CAD: 4-hour

USD/CAD 4-hour Forex Chart
USD/CAD 4-hour Forex Chart

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.

The pair has yet to form the last “shoulder” part of the Reverse Head and Shoulder pattern so y’all still have time to write trading plans if you’re planning on trading this one.

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.