Dollar bears huddle up! USD/CHF is having trouble breaking above the 1.0100 major psychological handle, which isn’t surprising since it lines up with not only a mid-channel resistance, but also a test of the 100 SMA that has just crossed below the 200 SMA. What’s more, stochastic is chillin’ like ice cream fillin’ on the overbought region! Shorting at current levels could get you a pretty sweet deal especially if the dollar continues to lose momentum against the franc. If you’re one of them more conservative traders though, then you can wait for a pop back up to the 1.0150 channel resistance before placing your short orders.
Not feeling like trading the dollar today? This one’s for you! GBP/CHF has found resistance at the 1.2900 major psychological area, and it looks like it’s heading fast for the 1.2700 mark. Keep close tabs on this level, folks, as the area is right smack at a 61.8% Fibonacci retracement, rising trend line, and a 200 SMA support that hasn’t been broken since late November. Buying at the 200 SMA area is a good idea if you’re into jumping in on trends. Take care to use wide stops though, as currency crosses like these tend to see more volatility than major pairs!
Last one up for this batch of charts is another trend play, this time on EUR/NZD’s 4-hour time frame. The pair can’t seem to get past the 1.5150 level, which is understandable as it’s also near a trend line and the 100 and 200 SMA resistance levels. Not only that, but the area has also been a pretty solid support level from way back in July. The cherry on top of this potentially bearish sundae is a slight bearish divergence on the chart. Will the euro lose more pips against the Kiwi this week? Watch this one closely, brothas!
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