Happy new year, forex brothas! We’re starting the year strong with these hot trend and breakout plays on USD/CHF and EUR/AUD. Get ’em while they’re hot!
USD/CHF is having trouble breaking below the .9750 psychological handle, which isn’t surprising since it lines up with a previous resistance area.
This time around the level lines up with what looks like a descending triangle support on the daily time frame. Not only that, but it’s also near a potential SMA crossover!
Will the dollar find support at the level? A bounce from the level could push the pair back to the .9900 resistance. Stochastic hasn’t hit oversold territory, though, so y’all better watch out for the possibility of USD/CHF chillin’ at the support or even faking out before seeing a bounce.
Watch this one closely, brothas!
Here’s one for my trend-trading friends out there! EUR/AUD is chillin’ like a villain near the 1.5400 major handle, which is right smack at a trend line and 61.8% Fib support on the daily time frame.
What makes the setup more interesting is that stochastic is hanging in the oversold region. But will it lead to an extended uptrend for EUR/AUD?
Buying at current levels could get you a sweet reward-to-risk ratio especially if you place your stops just below the trend line and the euro goes back to its 1.5700 previous highs.
Just keep your stops wide, aight? Don’t forget that currency crosses like these, especially on longer time frames, tend to be more volatile than the majors!