Welcome to mid-week, brothas! It’s all about the Greenback on today’s canvas, as I bring to you forex trade opportunities on EUR/USD and USD/CHF. Check it!
Remember that short-term uptrend that we spotted a couple of days back? Well, it looks like the bulls pounced on the technical signals after all!
After hitting a high near 1.1850, the pair is now back to the 1.1800 major psychological levels. What makes the retracement even more interesting is that it lines up with not only a 38.2% Fib retracement, but also the mid-channel support on the 1-hour time frame.
Think the euro is in for more gains against the dollar? Stochastic isn’t any help right now, so forex bulls and bears will have to rely on their muscles to break the consolidation.
A bounce from the 1.1800 levels could take the pair back to 1.1850 or even make new 2017 highs, while a dip below 1.1800 could lead to a revisit of the channel support near the 1.1750 area of interest.
Here’s one for longer-term traders out there! USD/CHF is having trouble breaking above the .9650 area, which isn’t surprising since it’s right smack at a support-turned resistance level on the daily time frame.
Stochastic is currently on the bears’ side with an overbought signal, so further losses for the pair is the path of least resistance. Still, watch out for a possible trip back up the channel!
Dollar bears can short at the earliest signs of bearish momentum and aim for the previous lows near .9450. Meanwhile, the bulls can also watch out for a break above said resistance levels gun for the .9850 previous support area in case the Greenback does break higher against the franc.
Whichever bias you trade, make sure you practice tight risk management decisions, aight?