Whattup, franc traders!
Planning on staying away from major dollar pairs today?
Check out GBP/CHF’s downtrend and CHF/JPY’s range and see if you can sneak in pips before they bounce from their inflection points!
First up is a nice and simple range trade on CHF/JPY’s 4-hour time frame.
See, the pair had trouble trading above 132.50 because the minor psychological handle lined up with the 200 SMA. Not only that, but it was also just below a range resistance that hasn’t been broken since late June!
With Stochastic flashing overbought signals, you can bet that at least some franc bears are waiting to pounce.
A couple more bearish candlesticks could lead to a momentum towards the 120.00 mid-range or even the 119.15 range support levels.
A clear break above the 200 SMA and/or the 120.70 range resistance, on the other hand, would mean that CHF/JPY’s consolidation is over and that the bulls are ready to party in the pip streets.
Here’s one for the trend playas in the back!
GBP/CHF is consolidating above the 1.2650 zone, which isn’t surprising because the pair is also trading around the 4-hour’s 100 SMA as well as a trend line resistance that’s been solid since mid-June.
Shorting at current levels would yield you a good risk ratio especially if the pound drops back to its July lows near 1.2525.
But what if the pound bulls are just taking a breather?
Watch out for a break above the SMAs and the descending channel resistance, which could lead to a trip to the 1.2790 or 1.2870 previous areas of interest.
