Ready to kick off new week of forex trading?
Swing trend traders are looking pretty good at the moment with not one, but TWO hot setups on the four hour charts below!
Check out the price action on EUR/USD and AUD/JPY!
EUR/USD: 4-hour
Greenback bulls have been well in control of EUR/USD the majority of the year, but the last few weeks have been a pretty even battle with the bears.
The market has pretty much been in consolidation mode for the past few weeks, trading tightly between a rough range of 1.1250 – 1.1350.
With the pair still in a longer-term downtrend, watch out for a downside break of the range before considering playing any short biases you may have.
Also consider that the falling 200 SMA has good odds of drawing in technical bears as well, so the area around the 200 SMA and the top of the range should be considered a high probability resistance area to short for now.
AUD/JPY: 4-Hour
Here’s a pullback play for ya!
The trend lower has been solid as a rock for the bears this past quarter, at least up until the strong bounce we’re currently seeing in the month of December.
After bottoming out at the 79.00 major psychological handle, AUD/JPY bounced a whopping 4.50% to touch the falling 200 SMA, which turned out to be a killer short entry for the bears.
With the downtrend still intact, is the pair ready to move below the 100 SMA and retest the previous swing low?
The momentum is certainly in favor of the bears, but for the more prudent traders, watch out for a potential bounce ahead as stochastic is signaling potentially oversold conditions short-term. If the pair bounces, bears would likely take another shot at a 200 SMA retest to go with the downtrend.
