Still waiting to catch big moves this week?
We might just see a pickup in volatility for these forex pairs pretty soon!
Here’s what I’m watching on USD/CHF and GBP/NZD:
USD/CHF: 4-hour
USD/CHF 4-hour Forex Chart
First up is this short-term consolidation action going on for USD/CHF.
Is it just me or does it look like sellers are starting to have second thoughts about breaking lower?While the pair has been forming lower lows over the past few days, Stochastic has been making higher lows. That’s a bullish divergence right there!
At the same time, the 100 SMA crossed above the 200 SMA to hint that support around the .9500-.9600 zone is more likely to hold than to break.
If that’s the case, USD/CHF could bounce right back up to the resistance near parity or at least until the dynamic resistance at the moving averages.
GBP/NZD: 4-hour
GBP/NZD 4-hour Forex Chart
Here’s another potential breakout you wouldn’t wanna miss!
GBP/NZD has formed lower highs and higher lows inside a symmetrical triangle pattern, and price is currently testing the resistance.
A break higher could be followed by a rally that’s the same height as the chart formation, which spans roughly 500 pips. Similarly, a move below support at the 1.9400 handle could trigger a selloff that size.Technical indicators are giving mixed signals at the moment, as the moving averages made a bullish crossover while Stochastic is reflecting bearish momentum.
If you’re hoping to play this breakout, a straddle might be a good strategy as long as you set your entries and exits properly. Do check out the average GBP/NZD volatility as a guide!
