Rise and shine, forex fans! Whether you like trading the dollar majors or currency crosses, I got yo back today with these daily charts on USD/CHF and EUR/AUD. Check ’em out!
First up is a nice and simple range trade. As you can see, EUR/AUD is about to hit the 1.6200 major psychological handle, which is right smack at a range resistance that hasn’t been broken since March 2018.
What makes the setup even sweeter today is that Stochastic is hanging out in the overbought area.
Can the bears defend the level for another day? Shorting at the retest of 1.6200 or the earliest signs of a bearish momentum after a retest would give you the best reward-to-risk ratio if EUR/AUD drops back to its 1.5350 range support.
Not a fan of the Aussie? That’s alright, you can also wait for EUR/AUD to trade above the 1.6200 resistance and trade an upside breakout instead. Just make sure that you know what you’re doing with your breakout plays, aight?
Where my dollar-trading brothas at? Those who have been watching USD/CHF’s triangle breakout should know that the pair is almost back at the 1.0050 previous triangle resistance.
Are we looking at a break-and-retest scenario over here? The pair is still poppin’ out bearish candles so it’s possible for the dollar to drop back to the SMAs or even the rising trend line before gaining support again.
In fact, y’all might want to hold out for a few green candlesticks before you jump in on a potential dollar rally.
Meanwhile, if you’re waiting for a longer bearish run for the dollar, then you might want to wait until USD/CHF breaks below its March lows before executing your short trades.
Whichever bias you’re trading, make sure you practice good risk management habits!