Whattup, forex warriors? Fight the mid-week blues by checking out USD/CHF’s break-and-retest play and a potential triangle opportunity on NZD/CAD!
Remember the retracement levels that we spotted a few days back? Well, the bears are finally taking charge!
USD/CHF is seeing some bearish momentum after getting rejected near the broken trend line support and a 61.8% Fib retracement on the 4-hour chart.
If that’s not enough to get you to look, then you should know that the 100 SMA has also just crossed below the 200 SMA. Is that convenient or what!
Shorting at current levels would give you a good reward-to-risk ratio especially if you believe that USD/CHF will drop below its October lows.
Still think USD/CHF will extend its downtrend? You might want to wait for the pair to surpass last week’s highs or even break above parity before you place any long trade.
Whichever bias you’re trading this week, make sure you got your trading plans locked down and that you follow your rules like your trading account depends on it (because it does)!
NZD/CAD is confined in what looks like a symmetrical triangle after falling by more than 500 pips in the last couple months.
Do you know what that means?
Until NZD/CAD chooses a direction, that is. After all, symmetrical triangles only denote indecision.
So, while it would make more sense for buyers to pull back some of the losses from earlier this year, it’s not a done deal yet.
The pair doesn’t look like it’s ready to break out of the pattern, so y’all still have time to whip up your trading plan for this setup.
Whichever direction NZD/CAD breaks, you can aim for a move that’s about the size of the base of the triangle. That’s about 200 pips or so in this case.
Not bad for a few days’ worth of trade, huh?