There are two setups I see today. One for the USD/CAD. And the other for the Swissy on the daily.
In yesterday’s Chart Art we identified an opportunity to go long at USD/CAD’s rising channel support.
Well, it looks like the dollar bears had other ideas! The pair broke below the psychological area and hit the 1.3300 mark instead.
But get this: the pair has bounced back and is now trading at yesterday’s levels!
Are we looking at a support-turned-resistance situation here? 1.3340 not only lines up at the broken channel support, but it’s also near a 50% Fib retracement AND the 100 and 200 SMAs on the 1-hour chart.
Oh, and look at stochastic chillin’ in the overbought region!
Dollar bears can place stops just above the SMAs and aim for the monthly lows for a good R:R.
But if you think that we’re looking at a fakeout, then you could also wait for the pair to gain momentum above the channel support before entering your long trade orders.
Fakeout alert! Earlier this week USD/CHF had “broken” a rising channel support that hadn’t been broken since Mid-2016.Turns out, the breakout was as legit as Lebron James’ “fall” during the Cavs’ game against the Spurs this week.
USD/CHF is now happily flirting with parity again after dipping to the .9850 area. Not only that, but it looks like momentum is on its side.
Aside from the 200 SMA support chillin’ just below current prices, a bullish divergence has also popped up to spur (heh) on the bulls.
The 1.0150 and 1.0300 levels are good areas to target if you’re looking to go long. Just keep your risk management strategies tight, aight?