Comdoll traders huddle up!
We’re all about commodity-related currency pairs today as we look at CAD/JPY’s range and AUD/USD’s break and retest situation.
What do you think of these setups?
First up is a simple range play on CAD/JPY’s 1-hour time frame.
The pair just hit the 105.75 level that served as support two weeks ago but turned into a resistance zone last week.
Will the range resistance hold today? Stochastic is telling us that the pair might be “overbought.”
A short trade at current levels would yield maximum pips if the range holds and CAD/JPY drops back to its 104.50 range support.
Don’t discount an upside breakout though. Remember that consolidations like this just means that the pair is having trouble finding its next direction.
Make sure your trading plans also cover an upside breakout so you don’t miss out on any opportunity!
AUD/USD has been in an uptrend since mid-October but it looks like the bulls stepped up their game earlier this month when they pushed the pair above its ascending channel resistance.
Price is currently trading closer to .6600, which lines up nicely with the broken trend line resistance and the 50% Fibonacci pullback of last week’s upswing.
AUD bulls who are seeing a break-and-retest opportunity can buy at current levels and aim for November’s highs if not new monthly highs.
Not convinced that AUD/USD is done pulling back?
You can also take advantage of the latest downswing and aim for lower levels like the 61.8% Fib, the 100 SMA, or at least some bullish momentum before placing bullish bets.