Whattup, trading warriors!
Whether you’re into the major comdoll pairs or if you prefer trading crosses, I got yo back with potential resistance plays on AUD/USD and EUR/JPY.
Get ’em while they’re hot!
AUD/USD is poppin’ up long wicks near the .6550 minor psychological area, which isn’t surprising since it lines up with a resistance that has held at least twice since late April.
What makes the setup interesting today is that stochastic is also flashing an overbought signal on the 4-hour time frame.
Think the Aussie is due for some weakness against the dollar?
Shorting at the first signs of bearish pressure would give you the best reward-to-risk ratio especially if you’re eyeing the range support near .6375.
If you believe that we’re about to see an upside breakout instead, then you might want to brace for the pair blasting above .6550 and maybe hitting previous areas of interest near .6600 or .6650.
Here’s one for the trend playas out there! EUR/JPY is fast approaching the 118.00 zone, which is right around a channel resistance that hasn’t been (successfully) broken since late January.
That’s a bajillion years ago in lockdown years!
A break above 118.00 could take the pair to 118.70 or even previous highs near 120.00.
If the bears succeed in holding the trend line resistance, however, then the euro could find itself dropping back down to 116.50 or 115.50.
Whichever bias you choose to trade, make sure you’ve done your EUR/JPY volatility analysis, and that you stick to your trading plan like it’s your trading account’s last hope.
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
Roz has been engaged in the financial markets since 2017, specializing in Foreign Exchange, Before joining to FOREX IN WORLD she start to learn forex trading related information.
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