Welcome to Friyay trading, errbody!
Think you can make pips from EUR/AUD hitting a channel resistance and Cardano (ADA/USD) possibly reversing in the next trading sessions?
Take a look at their charts and let me know what you think!
EUR/AUD is consolidating at 1.4800, which isn’t surprising since the psychological level lines up with the 100 and 200 SMA on the 1-hour time frame.But wait, there’s more! As you can see, 1.4800 is near the channel resistance that bulls haven’t breached since late April.
Will EUR/AUD extend its downtrend? The odds are in the bears’ favor as Stochastic hangs out at the overbought area while diverging from the 1-hour prices.
Momentum below 1.4800 could take EUR/AUD down to the 1.4700 mid-channel levels or even May’s lows near 1.4600.
A break above the channel resistance, on the other hand, could push the euro to the 1.4950 and 1.5000 previous resistance levels.
Looks like ADA bulls are CardaNOT surrendering the 0.780000 level to the bears!And why not? 0.780000 has supported ADA/USD in the second half of March and Stochastic is giving us “oversold” vibes.
It also helps that the 100 SMA looks ready to cross over the 200 SMA. The last time we saw a crossover was before ADA/USD started a steep downtrend.
More importantly, the last time the 100 SMA crossed above the 200 SMA was in March just before ADA/USD shot up from 0.800000 to 1.250000.
Will we see a bounce from the support this week? Make sure you know all about ADA/USD’s average volatility so you’ll know where to place your stops and targets in case we do see some movement!