Today we’re doubling down on the Aussie as we check out AUD/USD’s uptrend and AUD/NZD’s Fib pullback play.
Which setup will you trade?
AUD/USD 1-hour Forex ChartAUD/USD 1-hour Forex Chart
Earlier this week wee saw AUD/USD find some support near a Fib pullback and ascending channel support on the 1-hour time frame.
I hope you took the trade because AUD/USD is now just under 100 pips higher than the spot!
We’re looking at the pair today because candlestick pattern reading suggests a bullish flag, which means that the Aussie could still extend its uptrend against the dollar.
What do you think? A breakout above the pattern could take AUD/USD to .7450, a high not seen since early September.
If AUD/USD traders are in the mood for a deeper pullback, though, then you should also watch out for a possible dip to the mid-channel or even the 100 SMA areas.
AUD/NZD Daily Forex ChartAUD/NZD Daily Forex Chart
Just last week we identified 1.0550 as a possible resistance level for AUD/NZD as it lines up with previous areas of interest.
The bulls were strong enough to push AUD to 1.0600 but the 61.8% Fib and 100 SMA resistance eventually won out and now AUD/NZD looks like it’s headed lower.
Shorting at current levels would set you up for a good risk ratio especially if you place your stops just above the 200 SMA and AUD/NZD drops back down to its September lows.
If you see AUD/NZD making new October highs, however, then you can re-evaluate your biases and prepare for AUD/NZD testing higher inflection points.
Good luck and good trading this one!