Forex End Of Week Brief: Late Session Trades For The AUD/USD And USD/CHF - Forex News by FX Leaders

Forex End Of Week Brief: Late Session Trades For The AUD/USD And USD/CHF

Posted Friday, October 13, 2017 by
Shain Vernier • 2 min read

Well, the end of the trading week is upon us once again. I hope that it has been a successful five-session run, with all of your trading accounts deep into the green. It seems as if we are just getting started, but it is time to shut it down for a couple of days.

There are a few hours left until the markets close, so let's take a look at a few trades.

AUD/USD

The AUD/USD has posted a nice rally today amid the inflation report facing the USD.

AUD/USDAUD/USD, Daily Chart

Buyers have dominated the session thus far, bringing a few resistance levels into play:

  • 50% retracement of macro-wave: .7928

  • Daily SMA:                                    .7920

  • Round Psyche Number:                .7900

  • 38% retracement of macro-wave: .7882

The Trade: The current intraday high is .7898. It looks as though bears are defending .7900. In the event that we see a late session bull run, shorts from the Daily SMA are high probability trades.

Sell .7915-.7920, using either a tight scalping or riskier long-term position trading plan. For the scalp, a stop above .7928 is in order. On the position trade, an initial stop above .7974 with a move directly above today’s high at the close is the ticket. Take at least a 1:1 R/R payoff from each.

USD/CHF

Slightly bullish sentiment has been the story today facing the USD/CHF.

USD/CHFUSD/CHF, Daily Chart

Rotation, rotation, rotation. Let’s take a look at how to trade it:

  • Key psyche level:            .9800

  • 38% yearly retracement: .9770

  • 20 Day EMA:                   .9713

  • Bollinger MP:                   .9709

The Trade: The trading plan for the rest of the day facing the USD/CHF is straightforward: Fade the extremes! Shorts from .9770 and longs from .9713 pose great entries to play consolidation back towards the value area of .9750.

This is a slow market. In the event that a short from .9770 does come into play, patience will be key. An initial stop above .9800 can be used for a 1:1 R/R position trade, and above .9775 for an ultra-tight scalp.

Bottom Line

Both of the above-outlined trade scenarios may remain live into the weekend. With Sunday’s Group of 30 Summit, be sure you are protected if holding open positions into today’s close.

Remember, no one ever went broke taking a profit! If things are looking good as we near this week’s finish line, consider racking the chips and moving on!

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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