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Can you believe it’s already the middle of the week?! See if you can book mid-week profits with a range trade on USD/CHF and a trend play on EUR/JPY. Get ’em while they’re hot!

USD/CHF: 4-hour

USD/CHF 4-hour Forex Chart
USD/CHF 4-hour Forex Chart

Can you guess where USD/CHF is right now?

If you answered “near the .9850 area that’s been significant for USD/CHF bulls and bears for YEARS,” then you deserve a pat on the back!

What makes the psychological handle interesting today is that it lines up with a range support that hasn’t been broken since September. Not only that, but there’s also a bullish divergence on the 4-hour chart!

Oh, and check out stochastic and Williams %R both showing USD/CHF’s “oversold” conditions on the 4-hour time frame:

Buying as soon as USD/CHF pops above the range support would give you a big reward-to-risk ratio especially if you place your stops just below .9850 and target the range resistance just below parity.

If you’d rather trade a downside breakout, however, then you better make sure you’re trading a clean break or even a break-and-retest situation! You wouldn’t want to trade a fakeout, would you?

EUR/JPY: 4-hour

EUR/JPY 4-hour Forex Chart
EUR/JPY 4-hour Forex Chart

After getting rejected at the 120.70 zone, EUR/JPY looks set to drop lower.

The move is convenient for euro sellers who must have seen a bearish divergence and that 120.70 lines up with a channel resistance on the 4-hour chart.

Will EUR/JPY extend its losses? Shorting at current levels would still make for a decent trade if EUR/JPY ends up making new December lows.

Not confident in shorting the euro? You can also wait for a break above the channel that we’re watching and aim for previous areas of interest closer to 121.25 instead.

Watch this one closely, yo!

Forex Chart Settings:

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