Whattup, forex brothas! I’m serving up short and long-term trend trades on USD/CHF and AUD/CAD that could get you a pip or two. Get ’em while they’re hot!
Remember that breakout play that we spotted a couple of days back? Well, it looks like the bears have committed to keep the downtrend going!
USD/CHF hit a low near .9850 and is now trading around the .9935 levels. What makes the area interesting is that it also lines up with a falling trend line AND 200 SMA resistance on the 1-hour time frame.
Will the Greenback extend its downtrend this week? Shorting at current levels could give you a good reward-to-risk ratio especially if the pair ends up making new monthly lows.
If you’re one of them dollar bulls, though, then you could also wait for a break above said resistance levels and aim for the area of interest near .9975 or even the highs near parity.
Don’t feel like trading the dollar these days? Here’s a currency cross play for ya! A few days ago we spotted a mid-channel support near the .9700 major psychological area.
Fast forward to today and it looks like the bears are running out of steam. As you can see, pair has been poppin’ up wicked wicks around the .9600 levels on the daily chart. And if you squeeze your charts further, you can see that the level has been a major area of interest for the pair for months.
Buying at the earliest signs of a bounce is a good idea if you think that the Aussie will get its mojo back against the Loonie. The .9900 handle is a good place to eye in this case, as it lines up with the channel resistance near the 100 SMA.
Be careful about buying this one, though, as countertrend trading isn’t for everyone!