Yo! Ready for more pips?
I got a lil’ somethin’ for short and long-term traders alike because both USD/CHF and EUR/AUD are presenting good trading opportunities rn.
Get ’em while they’re hot!
USD/CHF: 1-hour
In case you missed it, USD/CHF has broken below an ascending channel pattern that it has been following since late July.
Luckily, breakout traders have a chance to jump in now that the dollar is almost back at the broken support level.
Are we looking at a break-and-retest setup here? You can short at current levels or at the first signs of a downswing if you’d rather sell the dollar against the franc.
A stop just above the 1-hour trend line resistance would yield a decent risk ratio if USD/CHF ends up making new October lows.
Think USD/CHF will more likely extend its months-long uptrend? If the dollar goes back inside the channel, then you also gotta be ready to trade an extended uptrend and maybe a trip to the .9350 inflection point.
EUR/AUD: Daily
Candlestick pattern traders huddle up!
EUR/AUD just popped up a doji at the 1.5600 psychological level, which is interesting enough even before we notice that the area has been a BFD for EUR/AUD bulls and bears for most of this year.
Euro bulls have Stochastic’s oversold signal on their side but we really gotta wait and see how today’s candlestick plays out before we solidify any bias.
If today’s candlestick completes a Morning Star pattern, then you can start making trading plans around a possible bounce from the area of interest.
If EUR/AUD makes new monthly lows, though, or if you see the euro consolidate instead of making new directional moves in the next coupla days, then you might want to concentrate on straddle plays instead.
Whichever bias you end up trading, make sure to consider EUR/AUD’s average true range in computing your stops and profit targets!
