What’s better than a dollar setup? How about TWO dollar-related charts? Check out what’s cooking on EUR/USD and USD/CHF’s charts!
USD/CHF: 4-hour
USD/CHF is consolidating in what looks like an ascending triangle after falling by around 500 pips in the last couple of weeks.
While ascending triangles do tend to break to the upside, it’s still not a done deal. Remember that consolidations still represent indecision. That means we could see a continuation of USD/CHF’s downside action!
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The pair has yet to break in either direction so y’all still have time to whip up trading plans if you’re planning on trading this one.
A short at the earliest signs of a downside break would give you decent pips especially if USD/CHF falls back down to its March lows or even extends its downtrend.
Think we’ll see a higher pullback instead? Wait for a break above the triangle’s .9400 resistance before you make a play for a potential 150-pip breakout opportunity.
Whichever direction you choose to trade, make sure you practice risk management like yo momma’s watching you!
EUR/USD: Daily
EUR/USD just went under 1.1300 after hitting resistance at the 1.1500 major psychological handle.
The 1.1200 area is the level to watch, as it lines up with a resistance that had been a BFD for the bulls for most of 2019. What’s more, it also lines up with a 38.2% Fib retracement on the daily time frame!
Buying at the first signs of a bounce at the level would set you up for a couple of hundred pips especially if EUR/USD pops back up to the 1.1500 area.
If the “breakout” was just a 300-pip fakeout, though, then we could see EUR/USD confidently trade below 1.1200 again and maybe head towards areas of interest closer to 1.1100 or 1.0850.