This Monday, we have another busy week of data ahead of us to give the forex markets the push they need. However, a relatively slow Asian session gives us a chance to concentrate on several key technical levels across our MT4 charts.
As you can see on the AUD/JPY daily, it is a nice, higher time frame trending pair that respects major support/resistance levels. As a technical trader, there’s not much more you can ask for in a currency pair you’re looking to trade.
Price has been trending steadily downward inside a bearish channel and has been using the roughly 150 pip horizontal zone marked on the chart above as the stepping block to move down the trend line.
This is the in-play level that we will be watching on the @VantageFX Twitter account to manage our risk around.
Even with USDX ripping faces off, rallying higher out of the giant flag pattern that you can see on the chart below, the Aussie Dollar has actually still put in a week of gains. AUD/USD has bounced off trend line support (to the pip just quietly), while strength in commodities and the consensus finally sinking into markets that the RBA no longer has to be as dovish as they once were.
Pretty quiet calendar to start the week here in Asia, with the EUR CPIs probably only second tier. I’m not expecting too much short term impact in terms of data release volatility during any of today’s trading sessions.
This is a guest post originally appeared on Vantage FX. Reposted with permission.