Feeling comdoll bullish these days?
Don’t miss these reversal and trend opportunities on the 4-hour charts of USD/CAD and AUD/JPY!
Is that a head and shoulders formation I’m seeing on USD/CAD?
If my eyes ain’t deceiving me, it looks like this currency pair is gearing up for a break below the neckline support already.A downside break would confirm that a selloff that’s the same height as the reversal pattern is in the works. This could take USD/CAD 350 pips south yo!
A bearish moving average crossover seems to be brewing, suggesting that sellers are about to step on the gas.
However, Stochastic is just pulling up from the oversold area to hint that buyers could still take over. In that case, USD/CAD might still bounce back up to the nearby area of interest around the moving averages or 1.2800.
It looks like the ascending trend line is holding like a boss for AUD/JPY, and price is ready to bounce off the area of interest.Now this looks like a pretty strong floor since it lines up with the 100 SMA dynamic inflection point, too. This moving average is above the slower-moving 200 SMA to confirm that the uptrend is likely to carry on.
Aussie bulls could also take comfort in seeing Stochastic pull higher from the oversold region, indicating that buyers are taking control while sellers take a break.
Just how high can it go?
The Fib extension tool shows the levels that buyers could aim for, with the 50% level coinciding with the swing high as a prime take-profit point.
Stronger bullish momentum could lift AUD/JPY all the way up to the full extension at 86.36, but better keep your eyes peeled for signs of rally exhaustion at the nearby levels if you’re going long!