I hope you’re in the mood to trade currency crosses today, because I’ve got simple forex support and resistance plays on GBP/CHF and AUD/NZD that you wouldn’t want to miss!
GBP/CHF is having trouble breaking above the 1.3450 psychological handle, which isn’t surprising since the area has been a solid support since December and was an area of interest back in mid-2016.
With stochastic chillin’ like a villain on the overbought territory, you can bet your pips (with proper risk management, of course) that other bears are already watching this chart.
A short trade at current levels could get you a good reward-to-risk ratio especially if you place your stops just above the resistance area. If you’re one of them pound bulls, though, then you could also wait for a break above the line we’re watching and aim for the 2016 highs nearer to the 1.3800 – 1.4200 levels.
Here’s one for my trend-trading homies out there! AUD/NZD has just hit the 1.0550 levels, which is right smack at a rising channel support that hasn’t been invalidated since August 2016.
What makes the setup even more interesting is that there’s also a bullish divergence on the daily chart. Think the Aussie is in for more gains against the Kiwi?
Buying around current levels could get you tons of pips if the pair does bounce. A break below the channel, on the other hand, could drag the pair back to its previous lows near 1.0400.
Whichever direction you choose to trade on this one, just make sure to use wide stops, aight? Remember that currency crosses tend to see more volatility than the majors, and that trading longer time frames like these require extra wiggle room.