Roses are red, violets are blue. I’m looking at these hot dollar charts and you should, too! Check out Cable and Swissy’s daily charts, yo!
First up is a nice and simple trend play on Cable. As you can see, the pair is having trouble breaking below the 1.3250 area, which isn’t surprising since it lines up with not only a 50% Fibonacci retracement, but also a mid-channel area that has served as area of interest for the pair.
With stochastic almost hitting oversold levels, you can bet your pips (with proper risk management, of course) that other trade surfers are already on to this.
Will Cable bounce from current levels? Or will it drop back down to the channel support near the 100 SMA before seeing some bullish action? Watch this one closely, brothas!
About two weeks ago we identified .9750 as a possible resistance to USD/CHF’s uptrend. And lo and hehold, dollar bears have paid attention!
Based on the long wicks above the area, it looks like forex bears are defending the resistance well. Not only that, but a bearish divergence has also popped up to reinforce a bearish trade!
Shorting around current levels could get you a nice reward-to-risk ratio especially if you aim for the previous lows near .9450. If you’re one of them dollar fans, though, then you could also wait for the pair to break above said resistance levels (and even the 200 SMA) before placing your breakout positions.
Good luck and good trading, fellas!