Yo! Welcome to another round of charting!
Who needs a Hot Girl Summer when these setups provide enough fun, amirite?
USD/CHF is consolidating in what looks like a Head and Shoulders pattern after last week’s sharp upswing.Are dollar bulls running out of steam? A break below the pattern’s “neckline” could lead to a trip to the 100 SMA or even the .9100 major psychological area.
But what if the dollar isn’t done gaining pips against the franc? Watch out for a bounce from the .9200 levels, which could push USD/CHF back to its .9240 highs.
Keep close tabs on this one, forex friends!
GBP/USD: 4-hour38.2% Fib retracement of the last downswing.
Can GBP/USD bears extend the pair’s downtrend? Stochastic is already showing us a nice bearish divergence on the 4-hour time frame but conservative bears can probably wait for some momentum before jumping in.
A short trade below the 38.2% Fib could work if GBP/USD drops back to its June lows or even makes new monthly lows in the next trading sessions.
If the bulls manage to push GBP/USD above its weekly highs, though, then you should also be ready to trade the upswing all the way to the broken trend line or the 100 and 200 SMAs.