If you’re a trend rider or if you’re just lookin’ for short-term setups on the Aussie, then you may wanna check out today’s intraday charts update ‘coz I’ve got a channel + Aussie double special going on, with AUD/USD and AUD/JPY in focus.
AUD/USD has been trending higher for some time now. And if we connect the most recent peaks and troughs, we can see that an ascending channel pattern has formed.
Moreover, we can also see that the pair bounced off the channel’s support at 0.7340 but encountered sellers at the mid-channel area and is now moving back down.
Y’all may therefore wanna get ready to start lookin’ for an opportunity to go long on the pair.
However, the fact that sellers are lurking at the mid-channel area also means that there’s a higher-than-average chance for a downside channel breakout to occur.
As such, y’all may wanna make sure that support at 0.7340 holds before going long. Also, it would be prudent for y’all to prepare for a downside scenario a well, especially if the pair validates the downside breakout move by smashing lower past 0.7290 on strong bearish momentum.
Like AUD/USD, AUD/JPY’s recent price action also has a noticeable tilt to the upside. And like AUD/USD, a fresh ascending channel has also formed on AUD/JPY’s 1-hour chart.
Unlike AUD/USD, however, AUD/JPY has yet to test the channel’s support just above 80.80 since the pair is already encountering buyers at the area of interest at the 81.00 major psychological level.
And that means that there’s a risk that the pair may move back up without testing the channel’s support. Going long without waiting for the pair to test the channel’s support is extra risky, though, so only do so if you think you’re gangsta enough.
And as always, there’s a risk that the pair may stage a downside channel breakout instead. Such a scenario seems unlikely at the moment, though.
At any rate, y’all just make to practice proper risk management, a’ight?