We’re taking a closer look at comdoll pairs today, yo!
AUD/USD looks set for a break-and-retest trade while GBP/CAD is sitting on a support zone.
Which setup will you more likely trade this week?
AUD/USD 1-hour Forex Chart
Is AUD/USD ready for a trend change? The pair started an uptrend in mid-July when AUD found support at the .6700 psychological area.
Fast forward to today and AUD/USD is struggling to make new highs above .7050. In fact, AUD has already broken a trend line support and is trading below the 1-hour chart’s 100 and 200 SMAs.
AUD/USD traders who are betting on a break-and-retest situation can take cues from Stochastic’s overbought levels and the 100 SMA possibly crossing below the 200 SMA.
A bounce from the trend line resistance could drag AUD/USD down to its .6890 previous lows. Heck, AUD could even dip to the .6850 area of interest!
Don’t discount AUD bulls stepping back in the game though! A clear break back above the trend line could push AUD/USD to previous resistance zones like .7000 or .7050.
GBP/CAD 1-hour Forex Chart
I know you like ’em trend trades so I gotta let you know about GBP/CAD’s uptrend!
The pair is consolidating near 1.5600, which isn’t surprising since the psychological level lines up with an ascending channel support AND 200 SMA on the 1-hour time frame.
Trend warriors can start scaling positions in at current levels or wait for a bit of momentum before targeting previous highs near 1.5800.
Not confident that GBP/CAD can still extend its uptrend? GBP bears can wait for a clear break below the channel and the 200 SMA before betting on a downside breakout.
Whichever bias you choose to trade, make sure you’re using a trading plan and that you’re sticking to it like white on rice!