It’s all about the franc on today’s canvas, as we play around with forex trade opportunities on USD/CHF and GBP/CHF. Get ’em while they’re hot!
USD/CHF is about to hit the .9950 minor psychological handle, which is right smack at the 200 SMA on the daily time frame.
What makes USD/CHF’s current prices more interesting is that it’s also near the channel resistance area that hasn’t been broken since April.
Will dollar bears press the pedal on the metal this week? A short trade at the earliest signs of bearish momentum would give you a good reward-to-risk ratio especially if USD/CHF drops back to its previous lows near .9700.
Feel like the dollar will continue to gain against the franc? You might want to wait for a break above .9950 and the 200 SMA before you practice your best breakout strategies.
Watch this one closely, yo!
Much like in USD/CHF, GBP/CHF is fast approaching the 1.2400 major psychological area. This time around, 1.2400 lines up with a broken support and is around the 38.2% – 50.0% Fib retracement on the daily time frame.
The pair still has one or two (more like a hundred) pips to go before it hits the potential resistance level, though, so y’all still have time to whip up trading plans if you’re planning on trading this one.
The 1.1700 previous support is a good target if you’re thinking of shorting the pound against the franc. If you’re one of them pound fans, however, then you could also wait until GBP/CHF pops above the 50% Fib and make a possible move back to the 1.2950 and 1.3400 previous areas of interest.
Whichever bias you’re trading, remember that currency crosses like these tend to see more volatility than the majors. That means y’all have to use wide stops if you don’t want to get taken out before your daily time frame trade idea plays out!