It’s a busy week for the major currencies!
What do you think? Which trend will yield more pips?
If you’ve been paying attention to the major dollar pairs, then you’ll know that USD/CHF has been on an low key uptrend since the second week of April.Those who are looking to jump in could get in on a potential mid-channel retest near the 100 SMA on the 1-hour time frame.
If you think that the bears will flex some more muscles before they hand the reins over to the bulls, then you can also wait for USD/CHF to hit the channel support closer to the 200 SMA and then aim for April’s highs.
Not convinced that the dollar can extend its uptrend? That’s fine, you can wait for USD/CHF to break below the trend line AND the 200 SMA support before targeting previous areas of interest like .9680 or .9660.
Remember that Fib retracement play that we spotted a couple of days back? Well, it looks like pound bulls were in the mood to party some more!GBP/CHF is now at the 61.8% Fib, which is closer to the descending channel resistance on the daily time frame.
Shorting at the first signs of bearish pressure would get you in on GBP/CHF’s downtrend at a good price especially if the pair drops back down to its previous lows near 1.1200.
If you’d rather trade an upside breakout, however, then you can also wait until GBP/CHF clearly breaks above the channel and then shoot for potential retests of the 1.2750 or even 1.3000 previous resistance levels instead.
Whichever bias you’re trading this week, make sure you GBP/CHF’s average volatility in mind when you put them trading orders!