Looking for charts to mark today?
GBP/USD and AUD/JPY have interesting inflection points that you’ll definitely want to consider.
Check them out!
A couple of days ago we talked about AUD/JPY possibly forming a wedge that hinted at extending the pair’s downtrend.
Well, I hope you traded the pattern because AUD/JPY did make new monthly lows after breaking below the consolidation!
The pair is now heading fast towards the big 80.00 handle, which is near the 50% and 61.8% Fibs of the last downswing. Not only that, but it’s also near mid-July’s support, the 100 SMA, AND the channel resistance that had held the last time we considered it.
Bears who are liking the divergence on the 4-hour time frame can sell at the first signs of bearish divergence. August’s lows is a good start for a target but you can also hold your positions until AUD/JPY makes new monthly lows.
Meanwhile, bulls who believe that AUD/JPY will finally break its downtrend would have to wait for a clear break above the channel and the SMAs. 81.50 would make for a good initial target but the pair could also reach 82.75 or even 84.00 if the bulls have enough momentum.
Staying away from trends these days? I gotchu!
GBP/USD is consolidating in what looks like a 600-pip range after trading in an uptrend from September 2020 to March 2021.
The pair has recently found support at 1.3625 just as Stochastic flashes an “oversold” signal. Coincidence? I think not!
Pound bulls can start loading up at current prices and maybe scale up if or when GBP/USD clears the SMAs and mid-range levels.
If you’d rather sell the pound against the dollar, then you’ll want to do it somewhere closer to inflection points like 1.3800 or 1.3900 and then target the 1.3625 support or even a downside breakout of the range.
Whichever bias you end up trading, make sure to use the best risk management moves you have in your playbooks!