Up and at ’em, forex playas! Today we’re looking at short-term and swing forex trade setups on USD/CHF and AUD/USD. Think you can make pips from these charts?
Remember that Fib and divergence play that we spotted a couple of days back? Well, it looks like the bulls liked the setup, too!
Right now USD/CHF is back to testing the rising trend line, which currently lines up with the 100 SMA on the 1-hour chart. Before you place buy orders like there’s no tomorrow, though, you should know that the 1.0040 handle has been holding as resistance since last week.
Are we looking at an ascending triangle situation over here? A long trade at current levels is a good idea if you think that the Greenback will make new highs against the franc.
If you think that the dollar’s rally is about to lose steam, though, then you could also wait for USD/CHF to break below the trend line before executing your breakout strategies.
Either way, make sure you make good risk management decisions when you do jump in a trade!
After dipping to the .7650 area, AUD/USD has since found support and is now a couple of pips away from the .7750 psychological handle.
What makes the setup even more interesting is that the MiPs is just around the 50% Fib, 100 SMA, and falling trend line resistance on the 1-hour chart.
With stochastic just hitting overbought territory, you can bet your pips that other Aussie bears are already watching this one. A bounce from the level could drag the pair to its lows 100 pips away. If the pair breaks above the trend line, though, then we could be looking at a move back to the .7900 or even .8000 highs.