TGIF Legendary traders,
Yesss….., another awesome weekend is upon us.
However, before we call the weekend, awesome, we need to tidy our books. Meaning, we need to resolve within us, if we are going to trade or not, and then, update our journal.
If we ain’t trading, then the weekend is awesome already. However, if you gonna trade, let’s pick those bowz and gunz and see what the forex forest got for us.
1. AUD/USD
AUD/USD on the daily chart has been on a bullish slow motion run.
On the hourly chart, this pair has not been doing badly. Price is locked in an ascending channel and it’s currently losing the bullish steam, ever since price hit a strong resistance level (0.72424).
My bias is: There is every likelihood that the trend may fail and price could breakout from support level 0.72196. The breakout may encourage the bears to take price to test either one of the support level (0.72007) or both (0.71790).
2. AUD/JPY
There is a descending head and shoulders formation on the 4 hours AUD/JPY chart.
Price is currently hovering around 82.074, which could be another strong resistance level. If it is, we may see this pair heavily sold. Price may most likely find it’s next support at level 81.623.
That said, we could also see the present resistance level broken and price going on a bullish rampage, ensuring that the next resistance level is 82.774 before market closes for the week.
3. NZD/JPY
Last but not the least, we have the NZD/JPY which has clearly formed a pennant on the 4 hours chart.
Price is currently consolidating close to the resistance level (78.110). When price does this, a big move is about to happen. The big question is:
Where is the big move taking price to next?.
Well…, we need to get a confirmation first, before concluding on a reversal or a breakout. If a reversal occurs, we should be seeing our next support level (77.562) visited by price.
On the other hand, if a bullish breakout is confirmed, we may most likely see price go above level 78.284.
In all of these setups, confirmation and a sound money management is key.
Do have a great weekend and stay safe
