Franc traders huddle up!
Whether you like trading the safe-haven against the dollar or you like using it for currency crosses, I got yo back with neat trend plays on USD/CHF and GBP/CHF.
Which setup do you think will yield more pips in the next trading sessions?
Breakout alert! USD/CHF has been on a downtrend since the start of October but it looks like the bulls have found enough friends to force a breakout above the descending channel on the 1-hour chart.Y’all gotta watch the symmetrical triangle forming on the chart because we could be looking at a bearish pennant in the making.
For the newbs out there, a pennant is a continuation pattern that may extend USD/CHF for a couple more days.
Then again, triangles are indecision patterns. That means we could still see an upside breakout for the dollar!
The highs and lows at the base of the triangle make good initial targets in case we see a breakout but you should keep close tabs on post-breakout momentum to maximize your profit opportunities!
GBP/CHF is consolidating just under the 1.2400 mark, which isn’t surprising because the area lines up with the 100 SMA, the 50% – 61.8% Fib retracement levels of the last downswing, and a trend line resistance that’s been solid since late October.Talk about a triple threat!
Trend playas who are betting on more pound weakness can start scaling in shorts around the current levels and then aim for November’s lows to start.
If you believe that GBP/CHF is due for a reversal or at least a higher pullback, though, then you can also price in pound strength AFTER the pair breaks above the trend line resistance that we’ve marked.
Watch this one closely, yo!