Who’s up for trading the majors today? I hope you are, because I’m servin’ up hot setups on GBP/USD and USD/CHF for ya. Check it out, homies!
First up is a nice and simple uptrend on USD/CHF. As you can see, the pair is having trouble breaking below the .9950 minor psychological handle. And why not? The area lines up with a rising trend line, 100 SMA, AND a previous resistance zone!
The cherry on top of this sweet setup is a bullish divergence that’s forming on the chart with stochastic clocking in higher lows.
Buying at current prices could be a good idea if you think that the Greenback will extend its uptrend against the franc. A stop just below the trend line would get you a good reward-to-risk ratio especially if you aim for the previous highs above parity.
Not a fan of the pound? Here’s one for ya! Cable is finding resistance around the 1.3200 major psychological handle, which is a couple of cartwheels away from the 1.3250 channel resistance.
Will the bulls run out of steam at 1.3200 as they’ve been doing for most of October? A bearish divergence on the chart certainly points to it.
But not everything is set in stone, brotha, and that includes this downtrend. Conservative traders can either wait for a retest of the channel’s resistance or a bit of momentum before jumping in. After all, targeting the 1.3050 previous support could still give you a good risk ratio. Just make sure you make good risk management decisions, aight?