USD/CHF is having trouble making new highs around the .9650 area, which isn’t surprising since the level lines up with a broken support, 61.8% Fib retracement, AND the 200 SMA on the 4-hour time frame.Is USD/CHF ready for a downswing? I’m not seeing any bearish momentum just yet, so y’all might want to sit tight and see how the pair reacts to its current levels before you pull the trigger on your orders.
A short order at the first signs of bearish pressure would give you a good reward-to-risk ratio especially if you place your stops just above .9700 and aim for the pair’s March lows.
Think dollar bulls are just getting a breather? You can start loading up your longs as soon as USD/CHF clears the 200 SMA and maybe aim for .9900 or until you see some selling pressure.
Whichever bias you choose to trade, make sure you’re practicing your risk management skills like a champ!
Can you believe that EUR/GBP has rocketed by around 750 pips in the last FOUR weeks?!The pair now looks set to hit the .9250 zone, which has been an area of resistance for the pair since October 2016. Talk about commitment!
Will the bears defend the level for another day? Shorting at the first signs of selling around the area would give you the best reward-to-risk ratio especially if EUR/GBP drops back down to its .8400 range support.
If you think that nothing’s gonna stop EUR/GBP, however, then you can also place small long positions at market and build up your upswing play until the pair reverses or sees significant retracement.