Whattup, forex brothas. Whether you like trading the majors or currency crosses, I got yo back with these hot support and resistance plays on USD/CHF and EUR/GBP!
After a fakeout a couple of weeks ago, USD/CHF is firmly back at the ascending triangle that we’ve been watching on the daily chart.
The pair is currently lollygagging just below the .9900 major psychological handle, which is also around the rising trend line support that hasn’t been broken since February last year.
Will .9900 serve as support this time around? Stochastic is near the oversold territory, which should empower some bulls into attacking.
If you’re not feelin’ friendly to the dollar these days, then you could also wait for USD/CHF to (finally) break the triangle support and trade a downside breakout instead.
Triangle breakouts tend to be as strong as the height of the triangle’s base, so y’all can afford to wait for a break or even a break and retest if you choose to go that route.
As you can see, EUR/GBP broke below its long-term range in late February. I’m seeing a potential break-and-retest situation, though, with the euro currently on its way to the .8700 previous range support.
The pair is 50 or so pips away from the broken support yet, so you still have time to draft your trading plans if you’re planning on trading more euro weakness.
Think EUR/GBP will go back to its previous range instead? That’s alright, you can also wait for the pair to trade above .8700 and show bullish momentum before you enter your long trades.
Whichever bias you’re trading today, make sure you’re sharpening your risk management skills! No use winning trades if you don’t keep your profits, amirite?