Can you believe it’s already midweek?
Whether you like trading the majors or you’re looking at the comdolls this week, I got yo back with a trend play on Cable and a range setup on AUD/CAD.
Get ’em while they’re hot!
GBP/USD: 1-hour
Who’s FOMO-ing on GBP/USD’s short-term uptrend?
If you are, then you’re gonna love that it’s hanging out at 1.3775, which is just above the 100 and 200 SMAs as well as a retest of the 1-hour trend line support.
Will GBP/USD extend its uptrend? Keep in mind that it’s consolidating in a rectangle that could still lead to a breakout in either direction.
Watch out for a bounce from the trend line that could take the pound to its October highs if not the 1.3900 inflection zone from back in September.
If you’re more into shorting the pound or buying the dollar, then you can also wait for a clear break below the trend line support that we’re watching and make plans for possible dips to the 1.3725 or 1.3650 previous areas of interest.
AUD/CAD: 4-hour
AUD/CAD is about to hit the top of a range that’s been around since August!
.9350 is the level to watch for Aussie bears especially with Stochastic hinting at a short-term bearish divergence.
But wait, there’s more! If you zoom in and do a bit of candlestick pattern analysis, then you’ll see that AUD/CAD is poppin’ up long wicks as it nears the top of the range.
A clear rejection at the range resistance could drag AUD/CAD to the .9275 inflection point or the .9225 levels closer to the SMAs. Heck, it could even plummet to the .9110 range support if it gets enough momentum!
If AUD/CAD gets more support above the range resistance, however, then you also gotta be ready for an upside breakout that could lead to a longer-term reversal.
Watch this one closely, errbody!
