Where my trend players at? We’re looking at short and long-term trend setups on USD/CHF and GBP/AUD, brothas! Check ’em out while they’re hot!
Let’s start with a nice and simple retracement play on GBP/AUD. As you can see, the pair just found support at the 1.6800 major psychological handle. Not really surprising since it’s also right smack at a 38.2% Fib retracement AND a trend line retest on the 1-hour time frame.
Is the pound in for more gains against the Aussie? Stochastic has just left oversold territory, so pound bulls could already be looking at ways to extend the uptrend.
A long trade at current levels could yield around 150 pips if you aim for the 1.7000 previous highs. If you’re no fan of the pound, though, then you could also wait for a break below said support levels.
In any case, make sure y’all practice good risk management decisions when putting trades on currency crosses like these!
USD/CHF is fast approaching the .9750 area of interest, which lines up with not only a falling channel resistance, but also a range ceiling near the 100 SMA on the daily time frame. Oh, and look at stochastic almost hitting overbought levels!
Shorting around the resistance area would give you a sweet reward-to-risk ratio especially if you aim for the previous lows near .9450. But if you think that the Greenback will break above its downtrend pattern, then you could also wait for a convincing break above the .9750 – .9800 levels and the 200 SMA before aiming for highs above parity.