Yo! Ready to make more pips?
Today we’re looking at not one but TWO potential Aussie-bearish trades.
Will the comdoll lose more pips against the dollar and Kiwi?
AUD/USD 1-hour Forex ChartAUD/USD 1-hour Forex Chart
AUD/USD has been having a topsy-turvy week after hitting resistance at .7300 and finding support near the .7250 mid-range levels.
With the pair a few pips from the .7300 range ceiling and Stochastic hitting overbought levels, will AUD/USD bears step in again?
Shorting at current levels or the first signs of bearish momentum is a good play if you think that AUD/USD will revisit its late September lows.
Of course, you gotta watch out in case the bears don’t have enough hustle in their muscles to drag the Aussie past the .7250 support.
If you think “Nah, AUD/USD will have enough buyers to break the .7300 resistance” then you’ll definitely want to start writing trading plans around an upside breakout that could push the Aussie back to the .7400 previous area of interest.
AUD/NZD Daily Forex ChartAUD/NZD Daily Forex Chart
The Aussie gained a few fans over the last couple of weeks and now AUD/NZD’s uptrend has pushed AUD about 250 pips higher than its September lows.
Before you buy the Aussie like there’s no tomorrow, though, I gotta tell ya that AUD/NZD is about to reach the 1.0550 zone that’s also around the 50% Fib retracement of the last downswing, the 100 SMA, and a major support zone on the daily.
Can AUD bulls keep up their momentum? I’m still seeing green candlesticks so AUD/NZD could still bust through the previous support and retest resistance zones like 1.0750 or 1.0900.
If the bearish pressure wins out around the Fib levels that we’re watching, though, then you should also be ready with trend continuation plans that would profit from a trip back to the 1.0300 lows.