Currency cross traders gather ’round! Today we’re looking at a potential retracement on GBP/CHF and a swing trend play on AUD/CAD.
Check them out, yo!
GBP/CHF is on a free fall after finding resistance at the 1.3000 major psychological handle!
Thing is, the pair’s uptrend still looks solid, especially on the longer time frames. In fact, MarketMilk is saying that GBP/CHF is still “bullish” on the DAILY chart!
At which level do you think will the buyers come back?
1.2935 is a good prospect since it lines up with a 38.2% Fibonacci retracement and the “top” of a double top pattern back in November.
The 1.2900 level is also a pretty good bet since it’s right around a 50% Fib retacement AND a broken ascending channel resistance level. Not only that, but it’s also just above the 100 and 200 SMAs on the chart!
The pair has a few pips to go before hitting the Fib retracements, though, so you’ll still have time to draft your trading plans if you’re planning on trading this one.
If you’re not sure where to enter a long trade, you can consider splitting your entries and jumping in at different levels.
Just make sure that you still practice good risk management no matter what strategy you use!
AUD/CAD: 4-hourMissed AUD/CAD’s channel support play from a few days back?
That’s aight, you can take this one!
AUD/CAD is chillin’ like ice cream fillin’ just above the .9000 major psychological handle that also happens to line up with an ascending channel support on the 4-hour time frame.
If that’s not enough for you to pay attention, then you should know that stochastic has also just left oversold territory.
Buying at current levels would give you a sweet reward-to-risk ratio especially if you place your stops just below December’s lows and aim for previous areas of interest above .9100.
Not confident that AUD will gain more pips against CAD?
That’s fine, too.
You can wait for a clear break below the channel and .8975 levels and aim for previous areas of interest closer to .8900 – .8930 instead.
Forex Chart Settings:
Slow Stochastic: 14,3,3
100 SMA: Blue line
200 SMA: Red line
About Big Pippin
See what happens when markets stop being polite and start being real!
Here's why you'll NEVER make money in Forex. The Forex Cycle of Doom...
Using charts, I show how current currency price action is playing out and chart patterns forming.
More from Big Pippin