Trend playas huddle up!
Today we’re looking at not one, but TWO short-term trends that might give you pips.
USD/CHF is consolidating below the .9200 zone, which makes sense because the area sits near a descending channel resistance as well as the 100 SMA on the 1-hour time frame.And if that’s not enough to get you excited, you should also know that there’s a bearish divergence on the chart.
Dollar bears can short at current levels and aim for the channel’s support levels for a good risk ratio.
Meanwhile, bulls can wait for a clear break above the 100 SMA before targeting key inflection points closer to the .9230 or .9300 areas of interest.
If you don’t feel like trading the dollar today, then you’re gonna love GBP/NZD’s retracement opportunity.See, the pair is consolidating near the 1.9800 psychological handle that’s also around a 61.8% Fib level, a previous resistance, and a trend line support that hasn’t been broken since late May.
Pound bulls who are confident that GBP/NZD will revisit its June highs can start loading up long positions at current levels with stops just under the trend line support.
Not a fan of GBP? That’s fine, you can also watch out for GBP/NZD firmly breaking below the trend line or maybe the 100 SMA possibly crossing below the 200 SMA. Be ready for a reversal if you see a bearish momentum!