Think forex price action is boring these days?
Check out EUR/AUD’s lowkey uptrend and GBP/CHF’s months-long range:
After showing wicks and then reversing near 1.5810, EUR/AUD has gone back down to test the ascending channel support around the 1.5750 minor psychological level.
Will the channel support hold for another day?
Before you buy the euro like there’s no tomorrow, you should note that the 100 SMA looks ready to cross below the 200 SMA. If it does and EUR/AUD even hints at trading below the trend line support, then you gotta be ready to trade a possible visit to the 1.5700 previous area of interest.
But if EUR/AUD bounces from the trend line support and gains bullish momentum, then you can also make trading plans for a possible retest of the 1.5830 May highs.
If you hate missing simple range plays as I do, then you’ll appreciate the heads up that GBP/CHF is testing the 1.2800 major psychological handle that has been serving as range resistance since April.
What makes the setup more interesting is that Stochastic is chillin’ like a villain in the overbought territory.
Pound bears can sell at the earliest signs of rejection at the 1.2800 resistance. The 1.2650 range support is a good area to target, though you can also aim for the mid-range levels near 1.2730.
But wait! Don’t discount an upside breakout just yet! If pound bulls manage to push GBP/CHF above the range resistance, then you can eye the 1.2930 previous inflection point as a profit target.
Good luck and good trading this one!