Gather ’round, folks! I found a potential 200-pip play on USD/CHF. After finding support around the .9000 handle last week, the pair pulled up to test the former support level near .9235. That level seems to be acting as resistance now, which means that USD/CHF could slide back to its former lows. There’s also a bearish divergence, with the price making higher highs and stochastic making lower highs. Stochastic already crossed and is moving out of the overbought area, which means that there’s enough downward momentum. Just be careful if the pair suddenly jumps back above the .9235 resistance because this could signal that the pair’s rally isn’t over yet!
For y’all who can’t get enough of the Aussie, here’s another setup for ya! AUD/USD is sporting a bullish divergence on the 4-hour chart, but it looks like Stochastic isn’t done falling just yet. If you want to trade this potential long setup, then you might want to keep an eye on the 1.0100 handle as it lines up nicely with the 38.2% Fib on the chart.
Who’s betting pips on this toss up? On the 4-hour chart EUR/JPY is consolidating in a bullish pennant with price making lower highs and higher lows. According to my forex bible, the pattern usually signals trend continuation possibly as high as the previous uptrend. But trade carefully on this one, homies. This chart can be as tricky as a lady in red! You see, I also spotted a bearish divergence right when Stochastic is on the overbought region. If you can’t wait to trade this pair, then you might want to place stop orders past the psychological 116.00 and 114.00 handles.