I’ve got something for both range traders and trend players today!
Check out these setups on the 4-hour charts of AUD/CAD and USD/CHF:
AUD/CAD: 4-hour
Retracement time for this one!
AUD/CAD is already trending lower on its 4-hour time frame, cruising inside a descending channel connecting its lower highs and lower lows since November last year.
A pullback to the resistance levels seems to be underway, with price already testing the 38.2% Fib around the .9050 minor psychological mark. A higher retracement could still reach the 50% level at the mid-channel area of interest or the 61.8% Fib at the .9150 handle.
The line in the sand for a correction might be the top of the channel close to the .9250 minor psychological resistance. If any of these ceilings are able to keep gains in check, AUD/CAD could slump back to the swing low around .8900.
Technical indicators are in agreement that the selloff is more likely to carry on soon, as the 100 SMA is below the 200 SMA while Stochastic is approaching overbought levels.
USD/CHF: 4-hour
Not in the mood to catch trends these days? Here’s a simple range setup for ya!
USD/CHF has been pacing back and forth between support at the .9100 major psychological mark and resistance at the .9340 area. Price just bounced off the top of the range and might be setting its sights on the floor once more.
If buyers are keen to jump back in, as the oversold Stochastic suggests, the pair could already bounce off the area of interest at the middle of the range.
This happens to be close to the dynamic support at 100 and 200 SMAs. Oh, and did I mention that I’m seeing a bullish moving average crossover, too?
Better keep your eyes peeled for potential reversal candlesticks at the .9200 handle if you’re hoping to ride a move back to the range resistance!
