Who’s ready for some break and retest plays? I hope you are, because I’m servin’ up hot ones on USD/CHF and NZD/CAD for ya today. Check it!
As you can see, NZD/CAD broke above a falling channel earlier this week and hit a double top resistance around .8880 before heading back down.
It’s currently trading around the .8800 major psychological handle, which lines up with the 100 SMA and an area of interest from a while back.
The .8750 zone is also a good level to watch, as it’s right around the rising trend line and 100 SMA support and is closer to the broken channel resistance.
As in most trend plays like these, placing stops just below the trend line and aiming for previous highs is your best bet. Just make sure you don’t place too your stops too close, aight? Currency crosses like these tend to see volatility like nobody’s business!
If major dollar pairs are more your speed, then you’re gonna love this Fib play on USD/CHF. The pair found support around the .9800 MaPs, which is right smack at a 38.2% Fib retracement, 200 SMA, and a previous channel resistance on the daily time frame.
With stochastic flirtin’ with the oversold area, you can bet your momma’s cat that other dollar bulls are already watching this one.
Buying at the earliest signs of a bullish momentum could give you a good reward-to-risk ratio especially if you place your stops below the mid-channel area and aim for October’s highs near 1.0000 – 1.1000.