Rise and shine, forex warriors! Let’s get them pips with EUR/AUD’s range and USD/CHF’s trend retracement opportunities. Check it!
EUR/AUD: 1-hour
Range traders gather ’round! EUR/AUD looks ready to trade higher from the 1.6225 mark that lines up with a support that has held at least THRICE since the start of the month.
Planning on taking advantage of the move? Buying at the earliest signs of bullish momentum would yield a good reward-to-risk ratio especially if EUR/AUD pops back up to the 1.6350 range resistance.
If you’re not convinced that the euro will strengthen against the Aussie, however, then you could also wait for a break below the support level that we’re watching and trade a possible downside breakout instead.
USD/CHF: Daily
Here’s one for the breakout junkies out there! USD/CHF has found support around the .9850 zone after breaking below a trend line that had been solid since mid-August.
Are we looking at a break-and-retest play in the making? The .9950 is a good level to watch as it lines up with a 61.8% Fibonacci retracement, the broken trend line, and the 100 and 200 SMAs on the 4-hour time frame.
Just keep in mind that the bears could attack well before USD/CHF hits the 61.8% Fib. To keep from missing a shorter (but equally legit) retracement, you should also keep close tabs on the pair’s reaction to the 38.2% and 50% Fibs.Of course, it’s also possible that the dollar would hit the 61.8% Fib mark…and keep going up.
Make sure to bring your risk management A-game when trading this setup so you don’t get blindsided by USD/CHF’s future price action!
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
