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Range traders huddle up! Today we’re looking at not one, but TWO range setups. See if you can trade USD/CHF and EUR/CAD‘s overbought and oversold conditions!

USD/CHF 4-hour

USD/CHF 4-Hour Forex Chart
USD/CHF 4-Hour Forex Chart

If you’ve watched USD/CHF long enough, then you’ll know that for some reason the pair reacts strongly to the .9850 handle. In fact, the level currently represents a range support that hasn’t been broken since September!

What makes the setup interesting today is that stochastic is flashing an “oversold” signal on the 4-hour time frame.

What do you think? Will .9850 hold as support for another day? Buying at a retest of the level would give you a hot reward-to-risk ratio especially if you place your stops just below the level and aim for previous highs closer to parity.

If you’d rather trade a downside breakout, however, then you can also wait for a clear break below .9850 and target previous areas of interest near .9700, .9750, and .9800 instead.

EUR/CAD: 4-hour

EUR/CAD 4-Hour Forex Chart
EUR/CAD 4-Hour Forex Chart

Here’s one for the currency cross traders out there!

EUR/CAD juuust bounced from the 1.4750 psychological handle, which isn’t surprising since the area had just served as resistance in late November.

Are we looking at a range resistance play in the making? Stochastic also just left the overbought territory, so y’all gotta be realistic with your reward-to-risk ratios if you’re planning on jumping on this one.

Shorting at current levels could still make for a good trade especially if EUR/CAD ends up dropping to the 1.4550 range support.

If you’re one of them euro bulls, however, then you can also wait until EUR/CAD breaks above the November highs and shoot for a retest of the 1.4900 previous area of interest instead.

Whichever bias you choose to trade, remember to manage your risks, ya hear? That means you gotta use stop losses but also be flexible in case price action goes against your original trade idea!

Forex Chart Settings:

Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line