Trend playas huddle up!
Today we’re looking at not one, but TWO short-term trends that might give you pips.
What do you think of USD/CHF and GBP/NZD‘s charts?
USD/CHF: 1-hour
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.
GBP/NZD: 1-hour
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!
