Welcome to a new week of chart-watching!
Check them out!
I hope y’all paid attention to the downtrend play that we talked about last week because those who did probably bagged a decent number of pips!
If you missed the downswing, then you should know that AUD/USD is back at the descending channel resistance and is consolidating around the 100 and 200 SMA zones.
Can Aussie bears keep up the downtrend for another week? Shorting at current levels would yield a good risk ratio especially if AUD/USD makes new June lows in the next few days.
If you think that the current consolidation will lead to an upside breakout, however, then you can wait for a clear break above the trend line resistance that we’ve spotted and then make trading plans for a possible move to the .7765 and .7800 previous areas of interest.
If trend plays are not your thing, then you can pay closer attention to NZD/USD.
See, the pair is consolidating at the .7200 area, which is right smack at a mid-range resistance AND a retest of a descending trend line on the 1-hour time frame.
Kiwi bears who are preparing for a trip to the .7140 range support can sell at current levels and place stops just above the mid-range resistance.
If the bulls stage a surprise rally and push NZD/USD above the mid-range levels, though, then you can also target the .7300 range resistance to get some pips.