Yo! I’m serving up an Aussie + chart pattern special today, with a channel on AUD/JPY and a bullish flag pattern on AUD/NZD.
If y’all can still recall, we found that there ascending channel on AUD/JPY’s 1-hour chart way back on July 14. And back then, we were waiting fpr the pair to test the channel’s support area, which was just above 86.90.
Well, our directional bias was right on the money since the pair has moved higher since then. Unfortunately, the pair found buyers at 87.50 when the 100 SMA acted as dynamic resistance. But if any of y’all were able to find an opportunity to go long regardless, then congratulations. And I gotta say that you’ve got game, dawg.
Anyhow, the channel is still intact. And as y’all can see, the pair is currently hesitating at the channel’s resistance area. There’s therefore a chance that the pair may be moving back down sooner or later, so better put this pair on yo wachtlist for a potential opportunity to go long.
As to where support will likely form, the price area between 87.50 and 88.00 look like a good place to watch since it’s also between the 100 and 200 SMA and is still within the channel.
But if the pair smashes past 86.90 on strong bearish momentum, then it’s game over. And in that case, y’all may wanna think about bailing yo longs (if you have ’em) or maybe even switch to a bearish bias on the pair.
If you’re more of a breakout chartist and less of trend rider, then check out that there bullish flag on AUD/NZD’s 1-hour chart.
As y’all can see, the pair recently surged higher before abruptly coming to a stop when it found resistance at 1.0800. Bulls ain’t giving up just yet, though, so the pair began trading sideways into what appears to be a bullish flag pattern.
As it says on the tin, a bullish flag pattern is, well, bullish. As such, our directional bias is to the upside. And if the pattern is validated by a strong upside breakout past 1.0800, then bulls will likely be gunning for 1.0900 next.
But if them bulls slip up for some reason and the pair starts to tank, then bulls will likely set up a defensive position at 1.0700 and 1.0660, which happen to be close to the 38.2% and 50% Fibonacci retracement levels respectively.
But if the pair smashes past 1.0660, then bulls are clearly out of steam and bears are in control, so y’all may wanna think about bailing yo longs then. Anyhow, just make sure to practice proper risk management as always, a’ight?