Wassup, peeps! For this week’s first intraday charts update, I’m serving up a couple of short-term setups on the Greenback, with EUR/USD and AUD/USD in focus.
If y’all can still recall, we had a Fibonacci retracement play on EUR/USD’s 1-hour chart as one of out setups in our July 3 intraday chart update.
Back then, we were lookin’ to go long if the pair respects any of the retracement levels, but we had our sights mainly on the 50% retracement level since it lined up nicely with the area of interest at 1.1280.
Well, the pair did pull back alright. And while the pair didn’t quite reach the 50% retracement level at 1.1280, it did find support at 1.1320, which lined up with the 38.2% retracement level. And since then, the pair has climbed higher for over 100 pips.
So if you were able to ride the upswing, then congratulations. You got game, dawg!
However, the pair got violently rejected when it retested resistance 1.1440. And taking the most recent price action into account, we can see that what appears to be a double top pattern is beginning to form.
A double top is a reversal pattern, although we’re not yet bearish on the pair until and unless the pair confirms the pattern by smashing the neckline at 1.1320 on strong bearish momentum.
But if or when the pattern does get validated, then them bears would likely be gunning for 1.1200, although 1.1280 is also an area of interest, so y’all may wanna keep an eye on how the pair reacts to 1.1280 since that where them bulls will likely be staging a counter-attack to try and invalidate the pattern.
AUD/USD recently broke that there rising trend line, as y’all can see. Moreover, them moving averages are already in downtrend mode. As such, we’re now bearish on the pair.
There are no fancy chart patterns or Fibonacci plays in today’s setup, but we can see that the pair is currently trading sideways, very likely because bulls are trying to push the pair back up above the broken trend line while bears are trying to push the pair lower.
Anyhow, we’re mainly bearish on the pair, as mentioned earlier. As such, we’re waiting for a clear break past 0.7570 and then 0.7540 to confirm that bears are in control.
But if the bulls somehow win, given that stochastic is already signaling oversold conditions and all that, then y’all may wanna take your finger away from the sell button (or bail out of yo shorts, if you have any) if the pair clears 0.7630 on strong bullish momentum.
In any case, just make sure to practice proper risk management as always, a’ight?