USD/CHF is finding support at the .9700 major psychological (MaPs) handle, which isn’t surprising since it’s also near a broken falling trend line. What’s more, it’s also just above the 100 and 200 SMAs on the 4-hour chart. The cherry on top of the bulls’ sundae is an almost oversold stochastic signal. A long trade at current levels could get you some serious pips if you believe that the Greenback is starting an uptrend against the franc. Of course, you could also wait for a break below the trend line if you think that the pair is just showing us a fakeout.
Countertrend traders huddle up! CAD/JPY is finding resistance at the 85.50 area, which is right smack at a mid-channel level and the 100 and 200 SMA resistance areas on the 4-hour time frame. Think the Loonie is about to lose pips on the yen? A stop above the mid-channel line is a must if you’re planning on taking this short trade. Be careful in trading this one though. Remember that countertrend trading isn’t for everyone!
Here’s an easy peasy one for trend surfers out there! EUR/CHF is finding support at the 1.1050 level, which is just above the rising trend line AND 100 SMA on the 4-hour time frame. Not only that, but an almost oversold stochastic signal is also throwing its weight in favor of the bulls. A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for the previous highs. Keep your stops wide though, as currency crosses like this one tend to be more volatile than the majors!
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.