Who’s ready for some trend action?
I hope you are because GBP/AUD and NZD/JPY are chillin’ near attractive trend-catching prices!
What do you think of these setups?
NZD/JPY saw a sharp upswing in the first half of October but it looks like the bulls have taken a chill pill since then.
As you can see, the Kiwi is now trading inside a channel that can be a bullish flag if it breaks to the upside.
Will NZD/JPY extend its uptrend? Or have the bulls run out of steam?
Kiwi bulls can wait for a retest of the channel support on the 4-hour time frame and then target the candlestick pattern‘s resistance near the 82.00 psychological handle.
If you’re more into shorting Kiwi or buying the yen these days, though, then you can wait for NZD/JPY to trade below the 100 SMA and the channel support that we’ve marked to get some downside breakdown action.
Whichever bias you end up trading, make sure to use your best risk management moves when trading yen crosses like this!
Here’s one for my Fib-trading brothas and sistahs!
GBP/AUD dropped like it was hot from mid-September through the end of October.
The bulls have gotten some support since then, though!
The pair is now sitting near 1.8375, which is right smack at the 38.2% Fib of the big downswing and a legit support level in late October.
Pound bears can take cues from the 4-hour bearish divergence and short GBP/AUD at current levels. November’s 1.8150 lows is a good place to take profits but you can also aim lower depending on the bearish momentum.