The Aussie Dollar has been clinging to the support of its 200 period moving average in the 4 hour chart. While it's hung on so far, the trend has been flattening out and a triangle pattern is forming. This might be useful for traders looking for a logical framework to develop entry strategies around this situation.
AUDJPY Chart Triangle
- AUDJPY Triangle
Click to enlarge
With that in mind, the boundaries of the triangle might provide a couple of alternatives for a sell strategy
- Sell on a confirmed break below the triangle support. If things were to pan out this way, a clear breach of the triangle support could be used as potential confirmation that price was breaking below the support zone of the 200 period sma
- Sell if price makes another minor trend peak at the triangle resistance, placing a close buy stop above that resistance. This strategy involves a "testing the waters approach" positioning early for an eventual break below the moving average but with a close stop loss.
