Whattup, franc traders!
Planning on staying away from major dollar pairs today?
Check out GBP/CHF’s downtrend and CHF/JPY’s range and see if you can sneak in pips before they bounce from their inflection points!
First up is a nice and simple range trade on CHF/JPY’s 4-hour time frame.See, the pair had trouble trading above 132.50 because the minor psychological handle lined up with the 200 SMA. Not only that, but it was also just below a range resistance that hasn’t been broken since late June!
With Stochastic flashing overbought signals, you can bet that at least some franc bears are waiting to pounce.
A couple more bearish candlesticks could lead to a momentum towards the 120.00 mid-range or even the 119.15 range support levels.
A clear break above the 200 SMA and/or the 120.70 range resistance, on the other hand, would mean that CHF/JPY’s consolidation is over and that the bulls are ready to party in the pip streets.
Here’s one for the trend playas in the back!GBP/CHF is consolidating above the 1.2650 zone, which isn’t surprising because the pair is also trading around the 4-hour’s 100 SMA as well as a trend line resistance that’s been solid since mid-June.
Shorting at current levels would yield you a good risk ratio especially if the pound drops back to its July lows near 1.2525.
But what if the pound bulls are just taking a breather?
Watch out for a break above the SMAs and the descending channel resistance, which could lead to a trip to the 1.2790 or 1.2870 previous areas of interest.