Looking for swing trade setups?
Whether or not you’re trading the dollar today, I got charts that could make you pips.
Check out what’s up on USD/CHF and GBP/AUD’s charts, yo!
USD/CHF: 4-hour
As you can see, the dollar just turned lower from the .9925 zone that’s been solid as resistance since June.
Now that Stochastic is signaling USD/CHF’s “overbought” conditions, you can bet your chunky shoes and lace-up sneakers that at least some dollar bears are watching this opportunity.
Sellers can start shorting at current levels and place stops just above September’s highs for a good risk ratio. The .9050 range support is a nice target but you can also exit at the .9140 mid-range levels if we don’t see enough bearish momentum.
Think USD/CHF is about to bust above the months-long range? Wait for a clear break above and maybe a retest of the .9225 zone before you can aim for areas of interest like .9300 and .9350.
GBP/AUD: 4-hour
What’s better than a breakout? A retest opportunity!
GBP/AUD looks set to retest the 1.8800 level that’s near the 38.2% Fib retracement of the last downswing after finding support at 1.8550.
Given that the area is also near a broken trend line support and that the 100 SMA is about to cross below the 200 SMA, it’s possible that there are bears waiting to pounce at the level.
GBP/AUD is still a few pips away from 1.8800 though. That means you got time to whip up trading plans!
Shorting at the first signs of bearish momentum is a good play if you’re betting on GBP/AUD returning to its September lows.
Meanwhile, bulls who think that the pound will return to its longer-term uptrend would have to wait at least until GBP/AUD firmly trades back above the trend line and the SMAs.
