Whether you like trading the majors or you’re more into currency crosses, I got yo back with these hot forex trading setups on USD/CHF and EUR/CAD.
USD/CHF looks like it’s about to bounce from the .9750 minor psychological handle! As you can see, the level also lines up with a range support that hasn’t been broken since the start of the year.
What makes the setup more interesting is that stochastic is flirting with the oversold territory and it looks like it’s also about to cross higher.
Buying at current levels would give you a good reward-to-risk ratio especially if you aim for the range resistance near 1.0100. The mid-range level closer to .9930 is also a good bet if you’re not sure about the dollar’s longer-term prospects against the franc.
Not a fan of the Greenback? That’s fine, you can also short the pair by either waiting for resistance bounces at 1.0100 and .9950 or wait for a break below the .9750 handle that we’re watching.
I spy with my eye a potential break-and-retest in the making! EUR/CAD is showing a long wick around the 1.4900 major psychological handle, which is right smack at the major support that the pair had broken back in July.
As if that’s not enough to alert the bears, note that the 1.4900 level is also around the 50% – 61.8% Fibs AND is just below the 100 SMA on the daily time frame.
The cherry on top of this sweet setup is an almost overbought stochastic signal.
Think euro bears will take this daily candle and create momentum? Shorting at current prices is a good idea if you think that EUR/CAD will go back down to its previous lows near 1.4600.
If you’d rather buy the euro against the Loonie, however, then y’all might want to wait until the pair breaks above the 1.4900 handle or even the 1.5200 resistance before you unleash your long trades.