CHF/JPY has been consolidating and all that while tapering to a point, giving us a symmetrical-ish triangle to play with. A symmetrical-ish triangle means that bulls and bears are bum rushing each other, but neither side has a clear advantage. As such, the pair could break out in either direction sooner or later. And if the pair does stage a breakout, then the resulting rally or selloff could potentially have enough steam for a 270-pip move.
Just make sure to observe how the pair reacts to the area of interest at 113.70 if or when the pair breaks to the upside. After all, the pair needs to clear that price area on strong momentum. If the pair fails to do so, then the breakout may end up being a fakeout. For a downside breakout, meanwhile, just make sure to keep an eye on the area of interest at 111.40.
Wassup? As y’all can see, USD/CHF has been steadily trending higher recently. In the process, an ascending channel has formed. And one of the more conservative ways to play an ascending channel is to look for opportunities to go long when the pair’s at or near the channel’s support area.
Unfortunately, the pair is currently at the mid-channel area and is obviously some distance away from the channel’s support area. The pair does seem to have trouble moving past 1.0130, though, since both bullish and bearish interest appears strong on that price level. As such, there’s a chance that them bulls may attempt to push the pair back down again. However, stochastic is already pointing higher after briefly visiting oversold territory. There’s therefore also a chance that the pair may continue moving higher. Anyhow, just make sure to practice proper risk management, a’ight?
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To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.