Will the bullish trend resume for AUD/USD and CAD/JPY soon?
Here are the levels where more buyers might be hanging out.
CAD/JPY: 4-hour
Is it time to hop in this CAD/JPY rally? It looks like the pair is ready for a pullback to an area of interest!
As you can see from the 4-hour chart above, the pair busted through the resistance zone around 90.00-90.50 then zoomed to a high of 92.20.
A correction seems to be taking place, and the former resistance might now hold as a floor. This happens to be spanned by the 38.2% to 50% Fibonacci retracement levels, as well as the dynamic support at the moving averages, which might be enough to keep losses in check.
Technical indicators hint that support is more likely to hold than to break since Stochastic is dipping close to overbought territory while the 100 SMA is safely above the 200 SMA.
If buyers hop back in soon, we might see a move back to the swing high and beyond, so don’t miss it!
AUD/USD: 1-hour
I’ve been watching this ascending channel on AUD/USD for quite some time now, and it looks like we’re in for another bounce off support soon.
Will buyers keep the trend going?
I’m seeing a fresh bullish moving average crossover suggesting that support levels are more likely to hold than to break. Plus, Stochastic is starting to pull higher from the oversold area to indicate that sellers are taking it easy.
Aussie bulls might charge upon seeing a test of the 38.2% Fib near the mid-channel area of interest and .7250 minor psychological mark. More conservative buyers might opt to wait for dip to the 61.8% level that’s closer to the channel support and .7200 handle.
Can’t decide where to set your entries? Don’t forget that scaling in could also be an option!
