In case you missed it, it’s already the middle of the week! Have you made pips yet? If you haven’t, then maybe these setups on USD/CHF and NZD/USD could make you some!
NZD/USD is having trouble making new lows below the .6600 major pyschological handle. Not really surprising since it lines up with an ascending channel AND a 200 SMA support on the 4-hour time frame.
Think Kiwi is about to extend its uptrend against the franc? Buying at current levels would give you a good reward-to-risk ratio especially if the pair pops back up to the previous highs near .6700.
Not a fan of Kiwi? That’s alright, you can just wait for a break below the support levels that we’ve identified and stand by for a potential downside breakout.
Remember that break-and-retest opportunity that we spotted a few days back? Well, it looks like it’s almost game time!
USD/CHF looks ready to turn lower after chillin’ like ice cream fillin’ near the .9900 major psychological handle.
But wait! Before you sell the dollar like there’s no tomorrow, you should note that the 100 SMA hasn’t crossed below the 200 SMA just yet. What’s more, stochastic hasn’t hit overbought status!
Waiting for a bit of bearish momentum is your best bet if you’re planning on trading a longer-term reversal for USD/CHF.
If you believe that the pair will go back to its uptrend, though, or that you can still short at higher levels, then you can also wait for USD/CHF to make new weekly highs and just adjust your orders depending on how the pair reacts to a trend line retest.
Good luck and good trading this one, fellas!