Who’s up for trading wicked trends today? Check out what’s cookin’ on USD/CHF and AUD/CAD’s 4-hour charts and see if you can make pips from their setups!
USD/CHF just hit the .9930 mark, which is right around a trend line support AND the 200 SMA on the 4-hour time frame.
What makes the dollar’s current levels more interesting is that it has served as support or resistance for the pair before.
Think the bulls flex their muscles at the level? Buying at the earliest signs of bullish momentum would give you a good reward-to-risk ratio especially if you’re betting on a move above parity some time in the next couple of days.
Not convinced that the dollar could extend its uptrend? You could wait for USD/CHF to break below the trend line that we’re watching and aim for the .9800 – .9850 areas of interest instead.
Dollar trading not your thing? Here’s another trend play for ya! AUD/CAD looks ready to hit the .9000 major psychological level, which lines up with a falling trend line resistance and the 100 and 200 SMAs on the 4-hour time frame.
The pair is still a couple of pips away from the level, though, so you still have time to draft them trading plans.Shorting at a bounce from .9000 could yield decent pips especially if the Aussie makes new 2019 lows against the Loonie.
But wait, what’s this?!
Looking at AUD/CAD’s 4-hour MarketMilk™ trend profile, we can see that SMAs, EMAs, and short-term trend indicators are all flashing “bullish” signals. Heck, the longer-term indicator is even warning that the overall trend is bearish “but possibly weakening!”
If you believe that AUD/CAD is in for a reversal, then you could place some long orders above the trend line that we’re watching and aim for potential moves to the .9100 – .9300 previous resistance levels.