First up is a nice and simple trend play on the dollar. USD/CHF is currently testing the .9950 psychological area, which is right at a rising channel AND the 200 SMA support on the daily time frame. What makes the setup more interesting is that stochastic is also almost in the oversold territory. Think the Greenback will see a bounce at current levels? Or will the pair finally break below the pattern that has been holding since August last year? Time to bust out your trend-trading strategies, homies, and make trading plans for a possible bounce or break on this one!
I spy with my cool blue eyes a possible bullish pennant in the making! What’s more, the 100 SMA has just crossed above the 200 SMA and, after squishing the daily chart we can see that crossovers like these have worked at least twice before on the pair. We gotta take this crossover seriously, dawg! A break above the possible pennant could inspire a move to the 143.00 area of interest or even the previous highs around 148.00. If you’re planning on trading this one, make sure you’re not stingy with your stops. After all, yen crosses like these tend to see volatility like nobody’s business!
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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.