Welcome to mid-month trading!
If you’re into trends and you’re looking for short-term opportunities, then you should check out what’s cooking on AUD/JPY and the Dollar Index’s 1-hour charts.
Let me know if you’re into these setups!
Dollar Index: 1-hour
The dollar has been making pips rain against its major counterparts and now the Dollar Index (DXY) is trading just above the 99.00 area.
So far the 99.25 level has been successful in keeping the bulls at bay. DXY just got rejected at an ascending triangle resistance and it looks headed for the trend line support near the 100 and 200 SMAs.
The trend line/ moving averages area is a good place to buy if you’re looking to enter DXY’s uptrend. You can watch how the index reacts to the area and then buy as soon as you see bullish momentum.
If you’d rather sell the dollar, however, then you can take advantage of the current momentum and take a short trade until DXY hits a support zone or until green candlesticks pop up.
AUD/JPY: 1-hour
Here’s one for Aussie playas out there! AUD/JPY has been trading in an uptrend since hitting support at 82.00 in late February.
The pair is now trading at 85.00, which is close to the 50% Fibonacci retracement of the last upswing as well as the 200 SMA and trend line support on the 1-hour time frame.
Can AUD/JPY extend its uptrend?
Buying at current levels would yield a good risk ratio especially if the Aussie bounces back up to its March highs.
If AUD/JPY breaks and consistently trades below its trend line support, however, then I hope you’re also ready to trade a downside breakout. The 84.00 psychological handle is a good place for initial profits though you can also aim lower depending on the bearish momentum.
Good luck and good trading this one!