Welcome to Wednesday, brothas. Get over the mid-week hump by trading these swing trade setups on USD/CHF and GBP/JPY!
Here’s a nice and simple resistance play for ya! USD/CHF just hit the .9850 psychological handle that has served as support and resistance areas in the past. Oh, and it’s also near the 100 SMA!
Stochastic is also chillin’ like a villain in the overbought territory, so you can bet your pips (with proper risk management, of course) that other bears are also watching this one.
Shorting at the earliest signs of bearish momentum is a good idea if you believe that the .9850 resistance would hold. Of course, you could also wait for the pair to hit parity if you think that the bulls could still push it to the level before the bears take over.
Trend playas huddle up! The 148.00 handle on GBP/JPY is holding as resistance, which isn’t surprising since the level is near the top of the channel AND the 200 SMA on the daily chart.
Will GBP/JPY extend its downtrend? Shorting at current levels would give you a good reward-to-risk ratio especially if you aim for the previous lows near 140.50.
Just remember to keep your stops wide, aight? Trading currency crosses (especially on longer time frames) could expose you to more volatility than if you trade the major dollar pairs and shorter time frames.