Aussie warriors gather ’round!
Today we’re looking at EUR/AUD bouncing from a range support and AUD/JPY possibly pulling a long-term reversal.
Think you can make pips from these setups?
EUR/AUD: 4-hour
In case you missed it, EUR/AUD climbed from the 1.5900 range support faster than Kanye’s Donda songs hit the top charts.
The euro is now about to hit the mid-range levels closer to the 1.6000 psychological level.
Will the bears step in at 1.6000? EUR/AUD is only starting to pop up green candlesticks while Stochastic is nowhere near its “overbought” levels. If we continue to see green candles, then the euro could reach the moving averages closer to the 1.6150 range resistance.
If 1.6000 turns into a solid resistance, though, then you can also sneak in a pip or two (or a hundred) by targeting the 1.5900 September lows.
AUD/JPY: Daily
I spy with my eye a possible reversal in the making!
AUD/JPY is having trouble extending its upswing above 82.00, which isn’t surprising because the psychological handle is close to a major (but broken) trend line support and the 200 SMA on the daily time frame.
Sellers can start shorting at current levels with August’s lows as initial targets. Of course, you can also aim for new post-trend line lows if you see enough bearish momentum.
Think AUD/JPY is just taking a breather? If you believe that AUD/JPY will extend its longer-term uptrend, then you’ll want to scale in after the Aussie breaks and stays above key resistance areas like the moving averages and the trend line support that we’ve marked.
Watch this one closely, forex friends!
