Sup, dawg! It’s a fresh week, so let’s have a fresh start with a couple of fresh channels on NZD/CHF and EUR/CHF.
EUR/CHF has been trading higher while more or less trapped inside that there ascending channel. And as I always, one of the more conservative ways to play an ascending channel is to look for a chance to go long when the pair is at or close to the channel’s support area.
And it look like it’s our lucky day since the pair is currently making its way down. So y’all better get ready to start lookin’ for an opportunity to go long, especially if 1.1530 holds as support. And there’s a good chance that 1.1530 will hold as support since stochastic is already signaling oversold conditions and all that.
However, y’all may wanna bail or cancel yo longs if the pair moves lower past 1.1500 since that’s an early warning that them bears are in control. And if the pair smashes past 1.1450, then y’all would really wanna bail yo longs if you still have ’em, since a breach past 1.1450 validates a downside channel breakout.
EUR/CHF ain’t the only Swissy pair with an ascending channel on its 1-hour chart ‘coz NZD/CHF also got one, as y’all can see. And as y’all can also see, the pair is currently close to the channel’s support area at 0.7060.
However, do note that stochastic is already about to reach overbought territory. Also, do note that selling pressure appears to be building up since the pair has been making lower peaks.
As such, be careful if you plan to go long on the pair since there’s currently a higher-than-average chance for a downside channel breakout. The pair needs to clear 0.7010 in order for the breakout to be validated, though.
Anyhow, just make sure to practice proper risk management, a’ight? Peace! See y’all again next week!