Whattup, forex friends!
If you’re looking for trading opportunities, then you’re gonna like that USD/JPY may be gearing up for a reversal while GBP/AUD looks set to continue its trend.
Check these charts out!
GBP/AUD: 1-hour
USD/JPY bulls have been BUSY since the last week of September but it looks like the bears put up a pretty good fight just under the 115.00 mark.
The pair is now forming a possible Head and Shoulders candlestick pattern as it also tests the 100 SMA on the 1-hour time frame.
Is USD/JPY ready for a bearish reversal? A clear break below the 113.50 “neckline” and the 100 SMA zone could drag the dollar to areas of interest like 113.00 or 112.25.
If USD/JPY finds support from the neckline and starts making new October highs, though, then the pair can finally test and stay above the 115.00 psychological resistance level.
USD/JPY: 4-hour
Staying away from the dollar this week? I still gotchu!
GBP/AUD is testing the 1.8300 handle near the 61.8% Fib pullback of the last major downswing, the 200 SMA on the 4-hour time frame, AND the trend line support that’s been holding like a champ since December 2020. That’s almost a year-long uptrend!
Before you buy the pound like there’s no tomorrow, take note that we’re not seeing hesitation candlesticks just yet. GBP/AUD can still weaken before it finds steady support, yo!
A long trade at the first signs of (sustained) bullish pressure would yield a good risk ratio if GBP/AUD bounces from the support zone that we’ve marked.
Of course, it’s possible that GBP/AUD can extend its mid-September to October downswing.
If GBP/AUD trades and stays below the trend line and 200 SMA, then the pound is open for retests of previous areas of interest like 1.8050 or 1.7800.
