For today’s intraday charts update, I’ve got a couple of channels for USD/CHF and CAD/CHF that y’all may wanna check out, especially the trend traders out there.
USD/CHF has recently been trading lower while more or less contained inside that there descending channel. And presently, the pair is milling about the channel’s resistance area. And it just so happens that the channel’s resistance area lies just below the area of interest at 0.9960. Moreover, the 100 SMA happens to be close by and could even potentially act as dynamic resistance.
There’s therefore a good chance that resistance will form and that the pair may move back down again. Y’all therefore better start lookin’ for opportunities to go short. And all the more so, given that stochastic is already pointing down and moving away from overbought territory.
But as always, just keep in mind that there’s always a chance for an upside channel breakout, although the odds of that happening is rather low presently. Anyhow, just be ready to bail or even switch directional bias if the pair surges past the 1.000 key psychological level, especially if bullish momentum is strong. You get my drift, dawg?
We’ve got another Swissy pair right here! I guess that means I’m serving up a Swissy special as well. Getting back on topic, price action on CAD/CHF ain’t really similar to that of USD/CHF, but both have been trending lower and both are trapped inside descending channels.
Unlike USD/CHF, however, CAD/CHF is still some distance away from the channel’s resistance area, which is around the 0.7350 minor psychological level. In fact, CAD/CHF seems to be hesitating at the mid-channel area, as y’all can see.
Stochastic is pointing back down again without ever reaching the overbought area, though, which implies that bearish interest is rather strong. There’s therefore a chance that the pair may move back down again without reaching the channel’s resistance area.
Going short at the mid-channel area is a bit riskier, though, so only more gangsta traders are recommended to try it. More conservative traders, meanwhile, are advised to wait until the pair tests the channel’s resistance area.
In any case, just keep an eye on 0.7410, since a breach past that level means that bulls are likely in control, so y’all may wanna consider bailing if the pair does get there. Also, 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.