USD/CHF is having trouble breaking below the .9950 area, which isn’t surprising since it’s right smack at a rising channel support that hasn’t been broken since May last year. What’s more, it’s also near the 200 SMA as well as the .9900 area of interest. The cherry on top of this sweet setup is an oversold stochastic signal. Will the Greenback extend its uptrend against the franc? Buying at current levels could give you a pretty good reward-to-risk ratio especially if you aim for the previous highs. near 1.0300. Make sure you manage your risks though, as the pair could also encounter resistance along areas of interests like the 1.0150 and 1.0250 handles!
Here’s a lil’ somethin’ for breakout traders out there! After breaking below a rising channel earlier this month, NZD/CHF looks set to retest the pattern’s broken support. What makes the potential retest even more interesting is that it also lines up with 38.2% – 50.0% Fibonacci retracement levels and is right above the 100 SMA that looks like it could easily cross below the 200 SMA. Breakout traders know that entering at a retest is one of the best ways to jump in. The pair still has a lot of room to cover before reaching it, however, so y’all still have time to whip up your trading plans and prepare for scenarios that may or may not work out for ya!
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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.