Whattup, fellas! I hope you’re in the mood to trade comdoll crosses because I’ve got hot forex setups on AUD/CAD and NZD/CHF that you wouldn’t want to miss!
First up is a nice and simple trend trade on NZD/CHF. As you can see, the pair is having trouble breaking above .6900, which lines up with a falling channel resistance AND the 100 SMA on the 4-hour time frame.
With stochastic just leaving overbought territory, you can bet your pips (with proper risk management, of course) that other bears are also watching (or are already in this one).
Will the New Zealand dollar see more losses against the franc? Shorting at current levels could still get you a pretty good reward-to-risk ratio especially if you aim for the previous lows near .6800. Just make sure you practice good risk management techniques, aight?
Remember that range trade that we were eyeing about a week ago? Well, it looks like some bulls paid attention!
AUD/CAD is now trading near .9850, which is a hair’s breadth away from the mid-range support on our chart. What makes the setup more interesting is that the resistance is near the 100 and 200 SMAs on the daily time frame.
Shorting at the earliest signs of bearish momentum would get you in pretty early if AUD/CAD does end up visiting its range support.
If you’re one of them Aussie bulls, though, then you could also wait for the pair to break above the resistance areas that we’ve marked and trade an upside breakout instead.