Range traders huddle up! USD/CHF is having trouble getting past the .9800 major psychological handle, which lines up nicely with a range resistance on the 1-hour time frame. Stochastic has also just left the overbought territory, so the bears still have room to short if they want to. Shorting at current levels could give you a tight reward-to-risk ratio especially if you place your stops just above the range. Just make sure you practice good risk management!
Here’s another range play for ya! AUD/USD found support just above the .7600 mark, which is also near a range support on the 1-hour time frame. What’s more, stochastic is chillin’ like a villain on the oversold region. Think the Aussie is about to see gains against the Greenback? Read up on trading ranges like these if you haven’t done it yet!
Here’s one for trend playas out there. EUR/AUD is finding resistance at the 1.4700 major psychological handle, which is right smack at a falling channel resistance on the 1-hour chart. Not only that, but stochastic is also flashing an overbought signal. Shorting at current levels could make for a good trade especially if you aim for the 1.4500 support and place your stops above the previous highs. Keep your stops wide though, as currency crosses like these tend to be more volatile than the majors!
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.