Aussie bulls, unite!
I’m seeing fresh opportunities to catch a breakout and a pullback on the 4-hour charts of AUD/JPY and AUD/USD.
AUD/USD: 4-hour
Hoping to catch a pullback on this uptrend?
AUD/USD has been cruising inside an ascending channel with its higher lows and higher highs since late December.
Another test of the channel bottom seems to be in the works, as the pair is retreating from the resistance around the .6950 minor psychological mark.
Aussie bulls might be in need of a break, as Stochastic is already reflecting overbought conditions and looks ready to move south.
The Fib retracement tool shows areas where buyers might be looking to join in. The 50% level is right smack in line with the mid-channel area of interest while the 61.8% level is close to the .6800 major psychological support.
A larger correction could reach the .6750 minor psychological level near the channel bottom and the dynamic support at the moving averages.
AUD/JPY: 4-hour
If you’re eager to catch an Aussie rally, then you might wanna keep your eyes on this double bottom breakout on AUD/JPY.
The pair busted through the neckline around the 91.00 handle and seems to be in the middle of a quick retest.
If this region holds as support, the pair could be in for an uptrend that’s the same height as the chart pattern.
That’s close to 350 pips yo!
Just be careful since Stochastic is still heading south to reflect bearish vibes, which means that either a larger pullback is underway or that another drop to the lows around 87.00-87.50 might follow.
Also, the 100 SMA is below the 200 SMA to signal that there’s a chance that the selloff might resume. The gap between the indicators is even widening to indicate strengthening selling pressure.
