Who’s feeling like trading fiat currencies this week?
If you are, then you’re gonna love where EUR/USD, AUD/USD, and USD/CHF are trading right now.
Check out these setups found on different time frames!
AUD/USD 4-Hour Forex Chart by TradingView
First up is a nice and simple setup for my trend-trading friends out there.
AUD/USD is trading at the .6900 zone, which is juust above an ascending channel support that’s been around since mid-October.
Oh, and have I mentioned that the level was a key resistance in December and a major support in January?
Technical indicators currently favor more buying as the 100 SMA stays above the 200 SMA while Stochastic is showing signs of turning higher from its “oversold” region.
A bounce from the .6900 levels opens the pair to a return to the big .7000 handle near the 100 SMA or February’s highs closer to .7200.
EUR/USD Daily Forex Chart by TradingView
Next up, we have EUR/USD turning lower after getting rejected at the 1.1050 high at the start of the month.
Are we looking at a return to EUR/USD’s longer-term downtrend? Or is the pair about to pull back after decisively breaking above its lower highs?
I’m eyeing the 1.0300 – 1.0400 zone for cues. The area represents the 50% Fibonacci retracement of the last months’ worth of upswing and is ground zero for the bullish SMA crossover on the daily chart.
Of course, EUR/USD still has to drop all the way to 1.0400 for the 50% pullback to happen. If there are enough bulls to sustain the pair’s current higher highs, then it could retest or even surpass its 1.1000 without dipping to major Fibonacci levels.
USD/CHF Weekly Forex Chart by TradingView
If range-trading is more your thing, then you should know that USD/CHF is poppin’ up long wicks around the .9200 psychological handle.
What makes the wicks more interesting is that they showed up just above a range support that’s been around since 2012.
That was back when our girl Rihanna was rocking the music charts with “Diamonds” and “Where Have You Been” and at least a decade before her big Super Bowl gig!
Will the range support hold another time? Stochastic is favoring some buying as it turns up from the “oversold” territory.
Look out for a bounce from .9200, which could take USD/CHF to the .9600 mid-range levels if not the previous highs at parity.
If you believe that USD has more room to fall before seeing sustained buying, however, then you can also plan for an actual retest of the .9000 psychological level before placing your long USD/CHF orders.
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