If you’re looking to trade the crosses today, I’ve got some ideas right here!
Why do I get the feeling that these levels might break down?
EUR/AUD: 4-hour
First up is this freshly-formed descending triangle on the 4-hour time frame of EUR/AUD. The pair seems to be attempting a break below support, so stay on the lookout.
Technical indicators are giving mixed signals, though.
While the 100 SMA is below the 200 SMA to suggest that support is more likely to break than to hold, Stochastic is in the oversold region to hint that sellers need a break.
If the oscillator pulls higher, bullish pressure could return and take EUR/AUD back up to the triangle top that lines up with the 100 SMA dynamic resistance at 1.4800.
A break below the triangle bottom at 1.4550, on the other hand, could set off a drop that’s the same height as the chart pattern or around a thousand pips!
GBP/CHF: 4-hour
Check out this GBP/CHF range support zone being put to the test!
The pair seems to be making another attempt to bust through the floor, and the lower highs plus technical indicators are in favor of more bearish action.
The 100 SMA is below the 200 SMA to show that the path of least resistance is to the downside, and GBP/CHF is also trading below these dynamic inflection points.
Stochastic is turning lower after a brief stay in the overbought area, hinting that sellers are eager to return. In that case, the pair might be in for a drop that’s the same height as the range or roughly 400 pips.
If pound bulls still defend the range support, the pair might be able to bounce back to the nearby resistance zone around 1.2300-1.2400.
