Welcome to the last trading day of the week, fellas! Time to get in your last-minute pips with these trend plays on USD/CHF and NZD/USD!
Remember that retracement setup that we looked at earlier this week? Well, it looks like the bulls don’t want to give up control just yet! USD/CHF broke above the trend line resistance that we were watching and made a play for the .9700 handle before the bears dragged it back down to .9600.
The pair is currently lollygagging at .9600, which is right smack at the broken trend line, 38.2% Fib retracement, and 200 SMA on the 1-hour time frame. Not only that but stochastic is also chillin’ like ice cream fillin’ on the oversold territory!
Think the Greenback will bounce back up to its previous resistance? Buying at current levels could get you a decent short-term reward-to-risk ratio especially if you aim for the .9700 mark. Of course, you could also short at the first signs of a return to the downtrend and aim for the .9400 lows if you’re more into shorting the scrilla these days.
NZD/USD broke below a falling channel support earlier this week but it looks like the bulls have fought for a bounce back towards the .7200 major psychological handle.
Are we seeing a breakout or a fakeout? There are plenty of potential entry points if you’re planning on shorting Kiwi. First is the .7200 mark, which lines up with a previous support level.
And then there’s the 50% Fib retracement, which lines up with the mid-channel resistance on the chart. Last but not the least is the .7250 levels, which is right around the channel resistance and the 100 SMA.
Take note that the 100 SMA has only recently crossed below the 200 SMA so the bears still have the trend on their side. Stochastic has just left oversold territory, though, so unless you’re gunning for a countertrend trade, y’all still have time to whip up your trading plans before we see another bearish run.