I’m serving up an Aussie special for y’all this week, mates! Got my eye on a triangle, a pullback, and a range setup that might be ready to play out soon.
Let’s start off with this textbook break-and-retest play on the daily chart of AUD/CAD. The pair is currently testing the area of interest at a former support zone, the 50% Fibonacci retracement level, and the .9700 major psychological mark. Phew!
Stochastic is already on the move down to confirm that sellers have the upper hand, which suggests that the selloff could carry on from here. Price could make its way down to the swing low at .9117 or lower before buyers take control in oversold conditions.
Next up is this simple but huge range setup on the daily time frame of AUD/NZD. Price is hovering close to the very bottom of the range at the 1.0500 handle, which might act as a floor again.
Aussie bulls could be ready to charge since stochastic is starting to pull out of the oversold region, indicating that sellers are about to take a break. If so, the pair could climb back up to the top of the range around the 1.1200-1.1300 region.
Lastly, here’s one for the shorter-term traders out there! GBP/AUD has formed higher lows and lower highs to consolidate inside a symmetrical triangle on its 1-hour time frame.
Price is approaching the top of the triangle around the 1.7650 minor psychological mark that might keep gains in check. In that case, the pair could slide back to the bottom of the triangle close to 1.7350.
A break past the top, on the other hand, could spur a rally that’s the same height as the chart formation, which spans 1.7200 to around 1.7800. Similarly a break below support could trigger a drop that’s of the same size.
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