Where my comdoll-trading friends at?
I KNOW you’re not yet tired of trading the Aussie because AUD/USD and AUD/NZD are hanging out near interesting inflection points!
Take a look, yo!
AUD/USD: 1-hour
Looks like Aussie bulls have taken a chill pill around the .7550 psychological area after pushing the pair higher since the end of September.
Thing is, the 100 SMA had been a solid support for AUD/USD for most of October. And now that the pair is trading below the 100 AND 200 SMAs, some bears may get the “reversal!” bug.
Is AUD/USD due for a reversal? Look for consistent trading below .7450, which means that the Aussie has broken below its 100-pip range on the 1-hour time frame.
The .7400 handle can be a good target but the bears can also drag AUD/USD to .7370 if they have enough momentum.
If AUD/USD finds support at .7450, then the pair could stay inside its short-term range. You can whip up your bounce plays or aim for a trend continuation depending on the momentum we see at the retest of the range support.
AUD/NZD: 1-hour
In the mood for a simpler range play?
AUD/NZD is flirting with the 1.0425 area that has been successfully supporting the Aussie since late September.
Stochastic isn’t giving us “oversold” vibes yet but a simple candlestick pattern analysis tells us that the wicks around the support level is good news for the bulls.
Buying at the first signs of a bounce would yield the best risk ratio if AUD/NZD pops back up to the 1.0525 range resistance.
If you see AUD/NZD break and stay below the range support that we’ve marked, though, then you should be ready to switch biases and trade a possible 100-pip breakout.
What do you think? Can AUD/NZD maintain its 100-pip range?
