I’m mixing it up a bit in today’s intraday charts update, with a channel on AUD/JPY and a Fibonacci retracement setup on AUD/CAD. Check ’em out while they’re still fresh!
AUD/JPY has been moving ever lower while apparently respecting that there descending channel on its 1-hour chart.
And presently, the pair appears to be encountering sellers after testing the 80.00 major psychological level, which is just below the channel’s resistance area. Y’all may therefore wanna start looking for opportunities to go short on the pair.
Looking at our technical indicators, we can see that the moving averages are still in downtrend mode. The 100 SMA even lines up with the 80.00 major psychological level. Stochastic, meanwhile, is already signaling overbought conditions and all that. Our technical indicators are therefore pointing towards a higher probability for further moves to the downside.
However, do remember that there are no guarantees in the forex market, so there’s always a chance that the pair may stage a topside channel breakout.
And if a topside breakout does occur, then a move higher past 80.60 would be an early sign that bulls are taking over. The pair would still need to clear 81.30 in order to validate the breakout, though.
No fancy chart patterns here! As y’all can see, AUD/CAD is currently pulling back after trending lower for some time.
And since stochastic is already signaling overbought conditions and all that, today’s play is therefore to look for opportunities to go short on the pair. And if we apply our handy Fibonacci tool, we can see that the pair is presently moving higher to test the 50% retracement level at the 0.9300 major psychological level.
An opportunity to go short may therefore present itself sooner or later. However, the pair is already hesitating at the area of interest at 0.9270. There’s therefore a risk that the pair may move back down again without testing 0.9300.
There’s also a risk that the pair may pull back to a higher level, though, since them moving averages are just about to cross-over into uptrend mode, which may attract buyers. And if that happens, then the pair could potentially move higher to 0.9350, which is just above the 61.8% retracement level.
Whichever scenario plays out, the pair should ideally smash lower past that rising trend line while also taking out the 0.9200 major psychological level.
But if the pair continues moving higher past 0.9350, than y’all may wanna think about switching to a more bullish bias on the pair.
In any case, y’all just make sure to practice proper risk management as always, a’ight? Peace, out!