Welcome to a brand spankin’ new trading week, brothas! Let’s get you a running start with these nice and simple short-term trends on USD/CHF and NZD/USD. Check it!
A few days ago we identified a triangle situation on USD/CHF. In it we said that a clean break below the .9940 levels could lead to a move down to .9830.
Well, it looks like the bulls are puttin’ up a fight! The pair is currently gunning for parity, which lines up with a 61.8% Fib retracement AND the broken trend line that we were looking at.
Are we looking at a break-and-retest scenario over here? A short trade at the earliest signs of a downside move with a 100-pip target is a good idea if you think that we’re seeing a retracement for a breakout.
If you’re a fan of the Greenback, though, then you could also wait for the pair to break above the trend line and the SMAs to see if the ascending triangle would play out after all.
Watch this one closely, fellas!
Remember that uptrend play that we discussed a couple of days ago? Well, it looks like the bulls were in the mood to come out, after all!
But after popping up to the .6975 levels, NZD/USD has since gone back down and is now testing .6925 area. And look at that, it lines up with the SMAs again!
Will NZD/USD extend its uptrend and see a bounce again? Stochastic has already hit oversold levels, so you know other bulls are already watching this one.
Buying at current levels and aiming for the previous highs could get you a good reward-to-risk ratio especially if you place your stops just below the rising channel.
If you think that Kiwi is set to make new monthly lows against the Greenback, though, then you could also wait for a break below the channel and aim for the .6850 – .6975 levels to make a pip or two (or a hundred).