Can you believe it’s already the middle of the week?
Whether you like trading the majors or if yen crosses are your thing, I can set you up with a swing trend play today.
USD/CHF is knocking on the .9050 minor psychological level that lines up with a 38.2% Fib AND a trend line resistance that the bulls have been minding since early April.
Will the dollar extend its downtrend against the franc? Take note that there’s already a bearish divergence on the 1-hour time frame.
Bears who are convinced of the downtrend can sell at current levels and then aim for new May lows for USD/CHF.
Think the dollar still has some way to go before encountering sellers? You can also watch out for a bounce and then rejection at the higher Fib retracement levels or the 100 SMA.
If the latest upswing gains enough momentum to break above the trend line and 100 SMA resistance levels, then you can also consider a longer-term reversal that could take USD/CHF back to the 200 SMA near .9200 or the .9225 previous inflection point.
Comdoll traders gather ’round! NZD/JPY is chillin’ at the 78.75 area that’s a key inflection point on the 4-hour time frame.
We’re not sure if the downswing has run its course yet, so you might want to wait for some momentum if you think that the Kiwi is just having a bad week and will soon return to its uptrend.
The 78.40 zone is a good entry point for the bulls as it lines up with a 61.8% Fib and the 100 SMA. You can also buy near 78.20 if you’re confident in NZD/JPY hitting its channel support before the bulls pay enough attention.
Think NZD/JPY’s downtrend will gain momentum instead? Wait for a clear break below the channel and 200 SMA support and then you can aim for areas of interest like 77.25 or 76.75.