Welcome to a brand spankin’ new trading month, brothas! Hit the ground running with not one, but TWO daily time frame setups that just might get you pips!
USD/CHF is back to trading around the .9950 – 1.0000 area, which is right smack at the long-term trend line that the pair had broken a few weeks back.
What makes the setup interesting today is that the pair is trading just below the 100 SMA that looks ready to cross below the 200 SMA. If you’ve read your moving averages lessons, then you’ll know that crossovers could signal potential reversals.
Is USD/CHF just getting ready for more losses? Shorting once a crossover materializes, or at the earliest signs of bearish momentum would give you a legit entry for a long-term short on the pair.
If you think that the dollar is really about to go back to its uptrend, though, then you might want to wait until it clears the 100 and 200 SMAs before you aim for new 2019 highs.
Not in the mood for dollar-trading today? Here’s one for ya! CAD/JPY is lollygagging around the 82.50 zone, which lines up with the 100 SMA and a falling trend line that hasn’t been broken since November last year.Can Loonie bears extend CAD/JPY’s downtrend? Shorting at current levels would give you a good reward-to-risk ratio especially if the pair drops back to its 80.00 major psychological support.
If you’re one of them Loonie bulls, however, then you could also wait for a break above the trend line that we’re watching and maybe aim for a trip back to the 84.00 or 85.00 previous resistance levels.
Whichever bias you choose to trade, make sure you also choose to practice your best risk management moves when trading setups like these. Good luck and good trading, yo!