It’s all about the franc on today’s canvas, as I bring to you short and long-term trade opportunities on USD/CHF and EUR/CHF. Check it!
Let’s kick the day off with a simple short-term trend play on USD/CHF! The pair is having trouble breaking below the .9600 major psychological handle, which happens to line up with a rising channel support on the 1-hour time frame.What makes the setup even more interesting is that there’s a bullish divergence on the chart. Not only that, but the 100 SMA has also just crossed above the 200 SMA! Now that’s a beauty!
Buying at current levels could get you a sweet reward-to-risk ratio, though you could also wait for a bit of bullish momentum before placing your buy orders.
If you’re one of them dollar bears, though, then you could also wait for a break below said support levels and trade a downside breakout. In any case, make sure your stop loss game is tight when trading short-term time frames like this!
Here’s one for currency cross playas out there! EUR/CHF is lollygagging at the 1.0975 handle, which has been serving as area of interest for the pair since September 2015.
This time around, the pair is also sporting what looks like a double top on the daily chart. And right when stochastic hit overbought territory, too!
Think the euro will turn lower against the franc in the next couple of days? A bounce lower could drag the pair to the 1.0800 – 1.0835 levels while an upside breakout could take the pair back to its 2016 highs near 1.1100.