USD/CHF is heading fast towards the .9850 minor psychological level, which is right smack at a range support that has been valid since September.
Will .9850 hold as support for another time? MarketMilk certainly suggests so.
As you can see below, tons of indicators like stochastic, RSI, and Williams %R are signaling “oversold” conditions on the 4-hour time frame.
Buying at the first signs of a bounce would give you a good reward-to-risk ratio especially if you aim for the .9970 range resistance and place your stops just below the range support.
Feel like shorting the dollar instead? You can wait for price to trade below the support that we’re watching and aim for areas of interest closer to .9700 or .9800.
AUD/NZD just broke below the 1.0650 levels, which looks a lot like a double top “neckline” on the daily time frame.
If you’ve read your School of Pipsology, then you’ll know double top breakouts are usually as strong as the distance between the top of the “shoulders” and the “neckline.” We’re talkin’ around 175 pips in this case, yo!
Before you short the Aussie like yo momma made you do it, though, you should note that the 100 and 200 SMAs are just below AUD/NZD’s current levels.
1.0550 is a good level to aim for if you believe that AUD/NZD’s bearish momentum will last for a while.
If you’re one of them Aussie bulls, though, then you can wait for a couple of reversal candles to close, or for the pair to hit support levels near the 100 SMA before you execute them long trades.
Whichever bias you choose to trade, make sure you’re using your best risk management moves!