Got an Aussie special for y’all today!
Take a look at these support and resistance levels I’m watching on EUR/AUD and AUD/JPY.
Do you think we’ll see breakouts soon?
Check out this descending triangle forming on the hourly chart of AUD/JPY!
The pair is currently testing the resistance and might be setting its sights back on the support around the 93.00 major psychological mark again.
Is there still some bearish momentum left?
Moving averages are suggesting so, as the 100 SMA is below the 200 SMA to confirm that the selloff is bound to carry on.
Sustained selling pressure might even spur a break below the triangle bottom, followed by a downtrend that’s the same height as the chart pattern.
Just be careful since Stochastic is already indicating oversold conditions or exhaustion among sellers, so turning higher might mean a return in bullish vibes.
If Aussie bulls are ready to charge, AUD/JPY could bounce off the 100 SMA dynamic resistance around 94.00 and make its way back up to the triangle top at 94.50.
Looking for another chance to buy the Aussie?
This descending trend channel setup on EUR/AUD looks too neat to pass up!
The pair is gearing up for a test of the channel resistance around the 1.5600 major psychological mark, which might be the line in the sand for the downtrend.
A shallow pullback could already attract selling pressure around the upside barriers marked by the Fibonacci retracement tool.
In particular, the 50% level might already keep gains in check at the mid-channel area of interest. This happens to line up with the 200 SMA dynamic inflection point, adding to its strength as a ceiling.
The 100 SMA is already below the 200 SMA to confirm that the selloff is more likely to resume than to reverse. At the same time, Stochastic is moving south so EUR/AUD could follow suit as bearish pressure returns.
Watch out for a test of the channel bottom or the swing low near the 1.5250 mark if that happens!