We’re lookin’ at franc pairs today, yo! Check out EUR/CHF and NZD/CHF’s forex charts to see if you can make pips off of them!
First up is a nice and simple range setup on NZD/CHF. The pair is having trouble trading below the .6600 major psychological handle, which is right smack at a range support that hasn’t been broken this year. It also doesn’t hurt that Stochastic is flashing an oversold signal.
Buying at current levels would give you a good reward-to-risk ratio especially if you place your stops just below the support and aim for the range resistance near .6900.
If you’d rather short the Kiwi, then you could also wait for the pair to break the support level that we’re watching.
But before you do that, you gotta make sure that you’re on top of your breakout strategies! And if you think they still need tweaking, then you at least have to make sure that you’re managing your risk well.
If you shorted around the 1.1450 resistance that we spotted a coupla days back, then you would’ve been up by 100 pips or so by now.
But that was last week. This week EUR/CHF is sporting some interesting candlesticks around the 1.1300 major psychological level that lines up with a mid-channel support on the daily time frame.
Is the euro in for a bounce against the franc? I’m not seeing any bullish momentum yet, so y’all still have time to draft your trading plans.
If you’re thinking of buying EUR/CHF, then you should be aware of the SMAs that could limit the euro’s gains.
If you’re planning on selling EUR/CHF, then you might want to wait for a convincing break below May’s lows before you bet on a bearish momentum.
Good luck and good trading this one!