Whether you like trading short or long-term forex trade opportunities, I got yo back with these trend plays on AUD/JPY and GBP/CHF. Get ’em while they’re hot!
First up is a nice and simple trend play on AUD/JPY. After dipping to the 81.70 area, the pair has bounced back up by about 60 pips. What makes the current level interesting is that it’s right around a falling trend line resistance AND the 100 and 200 SMAs on the 1-hour time frame.
Stochastic hasn’t quite reached overbought territory, so there’s still some wiggle room for the bulls before more bears pay attention.
Shorting at current levels could get you a decent trade especially if you place your stops just above the 200 SMA and aim for new monthly lows. If you’re one of them Aussie fans, though, then you could also wait for a break above the trend line and look for a trip back up to the 83.10 previous resistance areas.
Retracement alert! GBP/CHF is headed towards the 1.3475 levels, which lines up with a 38.2% Fib retracement, 200 SMA, and a previous resistance on the daily time frame.
Think the pound is in for more gains against the franc? The pair still has some ways to go before hitting the area of interest, so y’all still have time to draft your trading plans.
Whichever strategy you choose to execute, make sure you practice good risk management when you start trading!