Got another set of comdoll plays on today’s canvas!
Take a look at this potential trend setup on AUD/USD and some range action on USD/CAD.
Do you think these support levels could keep holding?
First up is this classic trend-following setup on the 4-hour time frame of AUD/USD.
The pair has been cruising above an ascending trend line for the past couple of months, and it looks like this support area is about to be tested again.Will buyers hop back in to sustain the climb?
Technical indicators are suggesting so, as the 100 SMA is above the 200 SMA while Stochastic is approaching oversold levels. This means that sellers are about to feel exhausted soon and are likely to let buyers take over.
If that’s the case, AUD/USD might bounce off any of the Fib retracement levels and make its way back up to the swing high at .7665. Keep an eye out for reversal candlesticks around the 50% Fib, which lines up with the trend line and .7400 handle.
Now here’s one for the range playahs out there!
USD/CAD does have a tendency to trade sideways, and it looks like the pair is making a fresh bounce off its range support.If bullish pressure keeps up, price could make its way back to the top around the 1.2850 minor psychological mark or at least until the area of interest at the middle.
Stochastic is still pointing up to show that buyers have the upper hand, but the oscillator is closing in on the overbought zone to signal exhaustion.
Meanwhile, the 100 SMA is below the 200 SMA to hint that resistance levels are more likely to hold than to break. These moving averages might even hold as dynamic inflection points, too!