Yo! Let’s start this week’s intraday charts update with a couple of short-term retracement setups on USD/CHF and EUR/USD.
USD/CHF recently broke to the downside from that there ascending channel. However, the pair soon found support and began pulling back up.
We’re still bearish on the pair, though. After all the pair did break that ascending channel. Also, them moving averages are already in downtrend mode.
And looking at the chart above, the pair is currently testing the area of interest at 0.9620. In addition, them moving averages are already in overbought territory. There is therefore a higher-than-average chance that resistance may form here and send the pair lower again.
However, there’s also a possibility that the pair may continue to pull back all the way to the next area of interest at 0.9670, which happens to line up rather nicely with the 50% Fibonacci retracement level.
Also, if (or when) the pair does pull back ti 0.9670, then the 200 SMA could potentially act as dynamic resistance, which is another technical argument for resistance to form there.
EUR/USD surged higher recently, but the bullish momentum seems to be running out of steam already since the pair is currently pulling back.
Looking at our technical indicators, we can see that stochastic is already signaling oversold conditions and all that. Them moving averages, meanwhile, are in uptrend mode. And it even looks like as if the 100 SMA may act as dynamic support. As such, there’s a good chance that support will form here.
However, if we apply our Fibonacci tool, we can see that the pair may still have room to move lower.
And if the pair will continue to move lower, then the most likely pullback area would be at the 50% retracement level since it lines up rather nicely with the area of interest at 1.1280. In any case, just make sure to practice proper risk management, a’ight?