Whether you’re into trading the majors or comdolls, I got yo back with a range play on USD/CHF and a forex trend trade opportunity on NZD/USD. Check them out while they’re hot!
First up is a nice and simple trend play on USD/CHF. As you can see, the pair is lollygagging around the .9425 level, which lines up with a rising channel support on the 1-hour time frame.
What makes the setup more interesting is that stochastic is chillin’ in the oversold territory. And I bet if you draw your Fibs that the consolidation would hit one of them retracements in there.
Will the dollar extend its uptrend today? Or will the bears force a retest of the 100 or even the 200 SMA before we see fresh bullish momentum? Watch this one closely, brothas!
Trend-trading not your thing? Here’s a range play for ya! NZD/USD just bounced from the .7200 major psychological handle, which isn’t surprising since it lines up with a support level from early February.
This time around Kiwi looks like it’s headed for the .7300 handle, which is right smack at the mid-range support AND the 100 SMA on the 4-hour time frame.
Gotta be careful in taking this range play, though, since it looks like we might be seeing the middle of a trend change.
See, the 100 SMA just crossed below the 200 SMA just as stochastic nears the overbought area. If this range is really a consolidation before the trend change, then y’all should be prepared for a downside breakout that would confirm the move!