USD/CHF is a couple of pips away from hitting .9970, which is right smack at a range resistance that has not (really) been broken since mid-September.
What makes the setup more interesting today is that stochastic is already flashing an overbought signal on the 4-hour time frame. In fact, MarketMilk’s overbought/oversold indicator is also saying that the pair is currently “overbought!”
The dollar is still a few pips away from an actual retest of the range resistance, so you still have time to write a trading plan for trading this one.
Shorting at the first signs of bearish momentum after a range resistance retest would give you the best reward-to-risk ratio especially if you’re confident that the dollar would drop back down to its .9850 range support.
If you don’t think that the dollar would fall against the franc, however, then you can also wait for a clear break above the range and aim for previous areas of interest above parity levels.
AUD/USD is chillin’ like ice cream fillin’ around the .6800 major psychological handle (MaPs), which is juuust above an ascending channel support on the daily time frame.
Before you buy the Aussie like yo momma told you to do it, however, you should also know that the pair is in an even longer-term downtrend on the daily. Not only that, but MarketMilk’s trend-following moving averages are also maintaining their “bearish” signals!
If you REALLY wanna buy the Aussie, then you should at least wait until it breaks above the (dotted) descending trend line and the 100 SMA on the daily time frame. The .6930 and .7000 areas of interest could work as initial profit targets.
If you’d rather short the comdoll against the dollar, then you can (a) wait for a descending trend line retest and aim for the .6700 previous lows or (b) wait for AUD/USD to make new November lows and aim for new 2019 lows.
Whichever bias you’re trading today, feel free to share them in here! I’m always interested to hear about others’ trade ideas!