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In the mood for comdoll cross trading?

If you are, then I’m your cat!

Let’s take a look at not one, but TWO ways AUD may be seeing reversals against European currencies:

GBP/AUD: 1-hour

GBP/AUD 1-hour Forex Chart

GBP/AUD 1-hour Forex Chart

In case you missed it, GBP/AUD recently broke below a weeks-long trend line support.

What makes the chart interesting today is that price is back at the broken trend line.

The odds are in the bears’ favor as the trend line aligns with the moving averages on the 1-hour time frame as well as the 38.2% Fibonacci retracement of the last downswing.

A rejection at the 1.7650 minor psychological handle could lead to GBP/AUD dipping back down to its weekly lows.

Stochastic hasn’t quite reached “overbought” levels, though, and price hasn’t shown enough bearish pressure for an actual reversal.

You might want to wait for a couple more red candlesticks if you’re trading the short-term reversal play!

What do you think? Will we see a break-and-retest scenario?

EUR/AUD: 4-hour

EUR/AUD 4-hour Forex Chart

EUR/AUD 4-hour Forex Chart

EUR/AUD has been on a downtrend since February but it looks like EUR bears have taken a chill pill in April.

In fact, EUR/AUD is back to trading above the 200 SMA on the 4-hour chart. That hasn’t happened since before the pair’s downtrend earlier this year!

EUR/AUD has a chance to cement a short-term uptrend as it tests the 1.4800 psychological zone near the 50% Fibonacci retracement of the last upswing.

It also won’t hurt the bulls that Stochastic is diverging and is hinting at bullish momentum right now.

Look out for consistent trading above the 200 SMA, which could push EUR/AUD back to its April highs or even March’s highs above 1.5000.

If you’re not convinced that EUR/AUD will find support from the 200 SMA, or if you’d rather buy at a cheaper price, then you can also wait to see if the pair would drop closer to the trend line support before finding some buyers.