We’re looking at not one, but TWO Aussie setups today!
That’s right, we’re checkin’ out AUD/USD’s potential reversal and GBP/AUD’s range play.
Get ’em while they’re hot!
AUD/USD has worked its way up from its .6850 lows in mid-May to the .7300 area in early June.Bulls will have to step up their game if they want to avoid a downside breakout of the Head and Shoulders pattern on the 4-hour chart!
Candlesticks are staying above the pattern’s “neckline” so far, so it’s possible to see AUD/USD shoot back up to its .7300 previous highs.
If AUD/USD dips below the neckline, however, or if it doesn’t find support from the 100 SMA crossing above the 200 SMA, then AUD could drop down to the .7100, .7050, or .7000 previous areas of interest.
GBP/AUD bounced from its 1.7300 range support to trade closer to the 1.7500 psychological handle.Will GBP find resistance at mid-range levels?
Stochastic is favoring some selling as it hovers near the overbought territory. The 100 SMA widening the gap below the 200 SMA may also discourage bulls from extending GBP/AUD’s upswing.
Bearish momentum from the 1.7450 – 1.7500 zone could lead to a retest of June’s lows or the .7250 range support.
If GBP/AUD extends its bullish momentum, however, then we could see GBP trade near .7600 before encountering selling pressure.
Keep close tabs on the next candlesticks for clues on GBP/AUD’s next direction!