Welcome to a brand-spankin’ new trading month!
Whether you’re into the dollar or you’re more into currency crosses, I got your back with trend plays on USD/CHF and GBP/NZD.
Get ’em while they’re hot!
In case you missed it, GBP/NZD has been trading in an uptrend since the first week of November.
Pound bulls took a chill pill around the 1.9600 handle, though, and now GBP/NZD is trading just under the 1.9450 mark.Can trend playas maintain their mojo in the next trading sessions?
Take note that the bulls have the upper hand with current prices hanging at the 50% Fibonacci retracement of the last upswing as well as the trend line support on the 1-hour time frame.
Pound bulls and Kiwi bears can start scaling in long trades at current levels and then add up as soon as GBP/NZD makes new highs.
If you’d rather short GBP/NZD, however, then you’ll want to wait until the pair clearly drops below the trend line and 200 SMA before you execute any short breakout trades.
Next up is a revisit of the triangle play that we spotted a coupla days back.
As you can see, USD/CHF has found resistance at the symmetrical triangle pattern and is now trading near the SMAs and the pattern’s support.Will the bulls step in around the current levels?
Aggressive dollar buyers can use the SMAs as an entry for a potential trip back to the .9300 resistance levels.
The more conservative ones might wait for an actual retest of the triangle’s support if there are not enough buyers around the current levels.
Not feelin’ the love for the Greenback? USD/CHF is trading near A LOT of potential support levels so you’ll want to be sure that you’re seeing a downside breakout before you place any of them short orders!