Welcome the first trading day of the week AND November!
Today we’re paying closer attention to AMD’s dojis, USD/CHF’s potential pennant, and the Dollar Index’s mid-range resistance.
Don’t even think of missing these setups!
AMD: Daily
After a strong showing last week, processor maker Advanced Micro Devices, Inc (AMD) popped up interesting dojis and found resistance around the $128 mark.
The $110 – $115 zone is an area to watch if you believe that the bulls are just taking a breather. Not only is the area near a trend line support, but it’s also around the 50% and 61.8% Fib retracements of October’s upswing.
AMD can also find support at the $120 levels closer to August’s resistance and the 38.2% Fib pullback if there aren’t enough bears to take the stock closer to the daily chart’s trend line support.
Watch this one closely to see where the bulls may step in and gain momentum!
Dollar Index: Weekly
The Dollar Index completed a Double Bottom pattern earlier this year but now it’s having trouble making new highs above the 94.00 – 94.50 area.
This isn’t surprising as the 94.00 – 95.00 area lines up with the 100 and 200 SMAs on the weekly time frame. Heck, it’s even a major area of interest and a mid-range zone since 2015!
Dollar bears trading the bearish divergence on the chart can aim for a trip back to 2021’s lows as soon as DXY sees a downside breakout from its current consolidation.
Bulls, on the other hand, can wait for strong demand above the SMAs and the mid-range levels and aim for the 98.00 area of interest.
USD/CHF: Weekly
Ready for more dollar talk? Check out USD/CHF’s weekly chart!
The pair fell from parity back in 2020 but has found support around the .8900 area.
It’s now consolidating inside a symmetrical triangle that may or may not complete a bearish pennant pattern. Hey, triangles are signs of indecision, aren’t they?
A break below the candlestick pattern could lead to a continuation of 2020’s downtrend and retest of 2021’s lows near .8900.
Meanwhile, an upside breakout and a sustained trading above the 100 SMA could lead to USD/CHF retesting areas of interest closer to .9800 or parity.
