Remember that downtrend play that we checked out a couple of days back? Well, it looks like the dollar bears reigned supreme after all! USD/CHF bounced just above the .9850 handle and is now back at the .9900 levels. Think the bulls have enough hustle in their muscles to push the pair back to the top of the channel where the SMAs are? Buying at current levels could get you a good reward-to-risk ratio especially if you aim for the .9950 area. But if you’re one of them conservative traders, then you could also wait for a retest of the channel support and hit the sell button instead. Hey, countertrend trading isn’t for everyone, right?
I spy with my cool, blue eyes another countertrend play in the making! USD/CAD tried to break below the 1.3000 major psychological handle yesterday but the bulls said “no dice” and pushed the pair back up. What makes the bounce more interesting is that there’s now a bullish divergence just as the pair is sporting a wicked wick on the 4-hour time frame. Will USD/CAD see enough bullish momentum to push it back to the 1.3200 mid-channel support or the top of the channel near 1.3400? Watch this one closely, brothas!
Forex Chart Settings:
To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.