Who’s up for trading the Greenback today? I hope you are, because I’ve got hot setups on USD/CAD and USD/CHF’s lined up for ya. Check it!
USD/CHF broke below a long-term range back in July but is now back in the pattern after it found support at the .9450 handle. It’s currently having trouble breaking above .9750, which lines up with previous area of interest and is just below the 100 SMA.
The .9800 – .9850 area is a more interesting level to watch, however, as it’s near the mid-range resistance, 61.8% Fib, 200 SMA, and a falling trend line that hasn’t been broken since November lat year.
Will dollar bears react to the overbought stochastic signal and drag USD/CHF back to its previous lows? Or will the bulls have enough muscle to push it back to the .9800 – .9850 levels before we see any decent selling pressure? Watch this one closely, fellas!
Here’s a simple retracement trade for you! USD/CAD is popping up after getting rejected at the 1.2450 – 1.2500 previous support on the daily time frame.
The 1.2950 – 1.3000 area is the level to watch, as it’s right smack at a 38.2% Fib retracement and previous support level.
Much like in the setup above, though, stochastic is already flashing an overbought signal so y’all get ready with your shorts if you think the scrilla is about to make new 2017 lows in the next couple of days.
But if you’re one of them countertrend traders, then you could also take advantage of the pair’s momentum and buy the pair until it encounters a significant retracement. Just remember that countertrend trading isn’t for everyone, aight?