Who’s ready for mid-week pips?
USD/CHF is still trading a downtrend while EUR/AUD is knocking on a key resistance level.
What do you think of these setups?
If you’ve been tuning in to USD/CHF’s short-term downtrend as I am, then you’ll be happy to note that the pair is back at the descending channel resistance.
If the pullback to the channel ceiling is not enough to convince you, then you gotta see that the resistance is also near the 100 and 200 SMAs on the 1-hour time frame.
Can USD/CHF extend its month-long downtrend? Shorting at current levels presents the best risk ratio and entry opportunity if you’re betting on more dollar losses against the franc in the next coupla days.
If you’d rather buy the dollar against the franc, though, then you’ll want to do it once USD/CHF breaks above the channel AND the 200 SMA resistance on the chart.
Watch this one closely, errbody!
EUR/AUD has been on a sharp downtrend since the start of the month but it looks like the euro found some friends around the 1.5350 area.
The pair is now hanging out just under the 1.5600 psychological handle that has been keeping both bulls and bears on their toes from early 2021. And look, the 100 SMA is also in the area!
Euro bears who think that the euro has room to fall against the Aussie can start scaling in at current levels.
More conservative traders can wait for a pullback to Fibonacci retracement levels like the 38.2% and 50% Fibs or at the first signs of bearish momentum.
Meanwhile, euro bulls and Aussie bears who believe that EUR/AUD has seen a bottom this year can wait for clear and consistent trading above the 1.5600 handle that we’ve marked and then target areas of interest closer to 1.5800 or 1.5900.