Can’t decide if you want to put in short or long-term trades today? I got you covered with USD/JPY’s retracement and GBP/CHF’s trend setups!
As you can see, USD/JPY found support just above the 109.00 handle after breaking below the closely-watched 110.00 mark earlier this week. In fact, the pair has just broken above what looks like a double bottom and looks like it’s still on its way up.
Will the dollar see a reversal? Or are we really just looking at a retracement? 110.50 is the level to watch this time, as it lines up with a broken support from last week. Not only that, but it’s also right around a 50% Fib retracement AND the 100 and 200 SMAs on the 1-hour time frame!
Keep close tabs on this one, fellas!
Trend warriors huddle up! GBP/CHF is lollygagging around the 1.2500 major psychological area, which is right smack at a rising channel support that hasn’t been broken since October last year.What makes the setup even more interesting this time around is that stochastic is also pointing to a possible bullish divergence.
The cherry on top of the potential bullish sundae is the 100 SMA just crossing above the 200 SMA on the daily time frame.
A long trade at current levels could give you a good reward-to-risk ratio especially if you aim for May’s highs. But if you’re one of them pound bears, then you can also wait for a break below said support levels or even the 1.2280 area of interest before placing your short orders.
In any case, make sure you place WIDE stops when trading currency crosses like these, ayt?