It’s all about currency crosses on today’s canvas, as we play around with swing-term charts of EUR/CHF and AUD/NZD. Get ’em while they’re hot!
Is EUR/CHF ready for an uptrend? The pair looks ready to bounce from the 1.0900 major psychological area, which lines up with a potential ascending channel support on the 4-hour time frame.
What makes the setup interesting today is that the 100 SMA has also recently crossed above the 200 SMA. Question is, will the bulls have enough juice to push the euro to higher highs and higher lows?
Buying at current levels would give you a good reward-to-risk ratio especially if you aim for the previous highs near 1.1000 or expect EUR/CHF to make new monthly highs.
Not convinced that the euro is in for a reversal? You could wait for a break below the “channel support” that we’re watching and execute breakout trades at the earliest signs of a breach.
Whichever bias you’re using this week, make sure you use your best risk management plays when you take them trades, aight?
Missed AUD/NZD’s break from a long-term range? Here’s an opportunity for you to enter!
See, the pair is having trouble extending its bullish momentum just below 1.0900. What’s more, a bearish divergence has popped up to discouraging the bulls!
The 1.0600 – 1.0650 zone is the area to watch, as it lines up with the broken range resistance AND the 38.2% Fib on the daily chart.
You can wait for a retest of the range resistance if you believe that the Aussie will retrace and then continue to gain against the Kiwi.
If you’d rather short the Aussie, then you could also short at a break below the current consolidation and then bail at the earliest signs of Aussie demand.
Good luck trading this one!