We’re looking at “risky” bets against the safe-havens today!
AUD/USD is about to test a broken support level while GBP/CHF is hanging out near a major range support.
Get ’em while they’re hot!
The spotlight is now on the bears as the Aussie approaches the broken support. This time, .7225 lines up with a 61.8% Fib retracement level. Not only that but there’s also a bearish divergence on the 1-hour time frame!
In case you missed it, AUD/USD has broken below the .7225 zone after consolidating in a 100-pip(ish) range for days.
AUD/USD bears can wait for a couple more pips to see how the pair reacts to the broken support. If you see any signs of a rejection and further selling, then you can pull the trigger on your short trading plans and aim for this week’s lows.
If AUD/USD busts through the broken support, however, or if it doesn’t find resistance at the 100 and 200 SMAs, then you should also prepare for a possible trip back to the .7320 late September highs.
Here’s one for the range playas out there!
GBP/CHF has popped up long wicks and dojis, which is interesting enough even if they didn’t happen just above the 1.2500 support that had held at least twice since mid-July.But it did and now Stochastic is giving us an oversold signal AND a bullish divergence on the 4-hour time frame.
Will 1.2500 hold as support again? You can start scaling in at current levels if you’re aiming for high risk ratios.
If you’d like some confirmation, though, then you can also wait for a bit more buying before aiming for the 1.2800 range resistance.
But what if GBP/CHF finally breaks below its 300-pip range in the next trading sessions?
Keep an eye out for a legit breakout, which could drag GBP/CHF down to areas of interest like 1.2350 or 1.2200.