We’ve been seeing strong trends these days, but it looks like major pullbacks are taking place on these daily charts.
Don’t miss out!
AUD/JPY: Daily
It’s a textbook break-and-retest setup on this one, fellas!
AUD/JPY busted through a strong ceiling around the 86.00 handle a few months back then hit another upside barrier at 95.75.
The pair has since retreated to the 50% Fibonacci retracement level, which lines up with the 88.00 major psychological mark. A larger pullback could mean a test of the former resistance and the 100 SMA dynamic support at the 61.8% Fib.
Moving averages suggest that support levels are more likely to hold than to break, possibly lifting AUD/JPY back to the swing high again. At the same time, Stochastic is indicating oversold conditions and looks ready to head back north, so price could follow suit.
Bitcoin (BTC/USD): Daily
Here’s one for the bitcoin bears out there!
BTC/USD tumbled below the $35,000 handle and has dipped to $25,000 before taking a break from its slide. This means that a retest of the former support area might attract more sellers.
Using the handy-dandy Fib tool shows that this area of interest is around the 50% level. A higher correction could reach the 61.8% Fib that’s right smack in line with the 100 SMA and $40,000 major psychological mark.
The 100 SMA is below the 200 SMA to confirm that the selloff is more likely to resume than to reverse, but Stochastic is saying that the odds are are in favor of bitcoin bulls for now.
USD/CAD: Daily
Last but certainly not least is this fresh uptrend forming on the daily time frame of USD/CAD. As you can see from the chart above, the pair has formed higher lows and higher highs connected by an ascending channel.
Price is currently testing the resistance, which could offer a countertrend opportunity to short until the nearby support areas.
Stochastic is just about to head south from the overbought area, after all, so there’s plenty of selling pressure to go around. However, the 100 SMA is still above the 200 SMA to suggest that the path of least resistance is to the upside.
If you’re hoping to catch a long position, you could wait for a test of the 38.2% Fib near the mid-channel area of interest or the 61.8% level near the 1.2700 mark. The line in the sand for this uptrend is at the channel bottom around 1.2600, so make sure you set those stops right!
