Welcome to mid-week trading, forex brothas!
Whether you like trading them comdolls against the U.S. dollar or the yen, I got yo back with trend plays on AUD/USD and NZD/JPY.
Don’t even think of missing these opportunities!
NZD/JPY: 1-hour
What’s better than price showing an obvious trend? That’s right, the price pulling back to an advantageous level!
NZD/JPY is trading just under the 77.00 major psychological handle, which lines up with a trend line resistance that’s been around since early June. Oh, and check out how 77.00 had been a key inflection point for the Kiwi in July!
Trend playas can take advantage of NZD/JPY’s upswing and short at its current prices. Previous support levels like 76.00 or 75.50 are good targets though you can also consider exiting if you don’t see enough momentum.
Don’t discount an upside breakout though! If you see NZD/JPY trading and staying above its trend line resistance, then you also gotta be ready to aim for areas of interest like 77.50 or 78.00.
AUD/USD: 4-hour
After falling by almost 500 pips since early June, AUD/USD has taken a breather and is consolidating around the .7400 psychological handle.
But wait! Is that a wedge I see? And no, I’m not talking about the pizza I had for breakfast.
The pair is consolidating in what looks like a rising wedge, which the School of Pipsology tells me could lead to a continuation of AUD/USD’s bearish trend.
What do you think? Should you short at current levels and then aim for July’s lows? Or wait for momentum or at least higher entry levels for a better risk ratio?
For the Aussie bulls, do you think AUD/USD is actually ready for a longer-term reversal? If so, then you best look for the pair to consistently trade above the 200 SMA before you execute your bullish trading plans.
