Who’s up for trading the scrilla today? I hope you are, because I’ve got neat setups on EUR/USD and USD/CHF lined up for ya today!
First up is a nice and simple trend trade on EUR/USD. The pair has hit resistance at the 1.2050 area and has since gone down to the 1.1975 levels.
If you look closely at the 1-hour chart, you’ll see that 1.1975 is actually right smack at a 38.2% Fibonacci retracement. Not only that, but stochastic also looks like it’s about to take off from the oversold levels!
Buying at current levels is a good idea if you think that the euro will immediately take off against the Greenback. But if you think that the pair would see deeper retracements before going back up, then you could also wait for a trip down to the 50% or even the 61.8% nearer to the 100 and 200 SMAs before jumping in.
Not feelin’ the love for euro these days? I got yo back, brotha! USD/CHF looks like it’s about to hit the .9600 major psychological handle, which not only lines up with a 61.8% Fib retracement, but is also right smack at a falling trend line resistance, SMAs, and a previous support level on the 1-hour chart. Oh, and look at stochastic chillin like a villain in the overbought zone!
You could short at current levels near the 50% Fib or wait for a 61.8% Fib retracement nearer to .9600 and then aim for previous lows near .9400. But if you’re pro-dollar, then you could also wait for an upside breakout above the trend line that we’re watching.
Either way, make sure you choose solid risk management practices when executing your trades!