Hollah if you’re trading the dollah!
Whether you like buying or selling the dollar these days, I got yo back with short and swing trade setups on USD/CAD and USD/CHF.
Think we’re seeing legit breakouts on their charts?
The dollar has been trading in a downtrend against the franc since the second half of December but it looks like the bulls flexed enough muscles to push USD/CHF above the 100 and 200 SMAs.USD/CHF is now consolidating just under the .9200 mark near the 61.8% Fibonacci retracement of December’s downtrend.
With a low-key divergence popping up on the 1-hour time frame, you can bet that selling momentum below the .9175 area of interest would attract at least some bears to drag USD/CHF back to its December lows.
If USD/CHF gains momentum above .9200, though, then the dollar has successfully broken above its downtrend and may be headed to the .9250 resistance.
Something just broke and, no, it’s not just your new 2022 resolutions. I’m talking about USD/CAD breaking its uptrend!The pair is not only trading below a visible trend line support, but it’s also looking like it’s ready for a move lower after getting rejected at the 200 SMA and 31.8% Fib retracement.
Dollar bears who believe that USD/CAD is ready for a short-term downtrend can sell at current levels and aim for previous lows near 1.2630.
If you believe that the dip is just a fakeout, though, and that USD/CAD can and will extend its uptrend, then you can also buy USD/CAD as soon as it consistently trades above the trend line and the SMA support zones.
What do you think? Which way will USD/CAD go?