Who’s ready for trend plays this week? I hope you are because these forex trend setups on USD/CHF and AUD/USD are too good to miss!
The plot has thickened for the AUD/USD downtrend that we’ve been watching since May 8, as the pair is now flirting with levels juuuuuust above the falling channel that we spotted.
The 61.8% Fib seems to be holding off the bulls for now, though the 200 SMA resistance might have also kept some of them from attacking.
A break above the .7480 area of interest could take the pair back up to the .7550 – .7600 resistance from back in April. But if the channel holds and Aussie bears come back out, then the pair might be dragged back down to its May lows near .7350. Watch out!
Is it me or is USD/CHF sporting a cool long-legged doji on the daily time frame? And it’s not just any doji either. It’s a doji right at a falling channel support, yo!
With just crossing on the oversold region, you can bet your pips that dollar bulls are watching this setup, too. If the pair completes the textbook setup, then look for a bounce back up to at least the .9850 – .9900 areas of interest.
But if dollar bears keep calm and carry on with their cause, then USD/CHF might revisit its late 2016 lows near the .9530 area.