Got these big moves on my radar this week!
I’m looking at make-or-break levels on the long-term trends of USD/CHF, CAD/CHF, and the S&P 500 index.
Are reversals in the cards?
USD/CHF: Daily
USD/CHF Daily Forex Chart
Check out this rising trend line that’s been holding since 2021 yo!
USD/CHF just bounced off the long-term support level once more, which means that the pair is ready to resume its major uptrend.
Just how high can it go?
The pair might hit a nearby roadblock at the shorter-term falling trend line connecting the lower highs since April. That’s right within the area of interest around .9700-.9800.A break above this potential ceiling, on the other hand, could clear the path for another test of parity.
Technical indicators are pointing to sustained bullish pressure, as Stochastic has plenty of room to climb before reflecting exhaustion among buyers.
To top it off, the 100 SMA is above the 200 SMA and is increasing its lead to indicate strengthening upside momentum.
CAD/CHF: Daily
CAD/CHF Daily Forex Chart
Reversal alert!
CAD/CHF just fell through the neckline of its complex head and shoulders pattern recently, which means that a big selloff is in order.
The pair is just pulling up for a quick retest of the former support around the .7400 major psychological mark. If this is enough to keep gains in check, price could tumble by the same height as the chart pattern or roughly 400 pips.
Just be careful when shorting since technical indicators are still hinting at the presence of bullish vibes.
For one, the 100 SMA is above the 200 SMA to suggest that the path of least resistance is to the upside. Then again, CAD/CHF has tumbled below both moving averages, so these could hold as dynamic resistance moving forward.
Stochastic is just starting to pull higher from the oversold region to show that Loonie bulls are ready to charge, though. Better keep an eye out for a move above the neckline to gauge if the uptrend might resume.
S&P 500 Index: Daily
S&P 500 Index Daily Chart
Everyone and his momma must be watching this key inflection point on the S&P 500 index, so you should pay attention to current levels, too.
After all, a break above this strong upside barrier might confirm a continuation of the bull market. On the other hand, more bearish candles around this area might signal that the risk rallies are over.Don’t forget that the 100 SMA is below the 200 SMA to suggest that resistance is more likely to hold than to break.
Also, the 200 SMA lines up with the trend line, 61.8% Fib, and support-turned-resistance zone to add to its strength as a ceiling.
Besides, Stochastic is already starting to make its way south after spending some time indicating overbought conditions. With that, the equity index could follow suit and slide back down to the swing low if bearish pressure persists.
