CHF bulls are in for some pain!
Well, at least if USD/CHF and CAD/CHF bounce from their current levels.
What do you think?
USD/CHF 4-hour Forex Chart
USD/CHF is hanging just above .9850, a psychological level that USD bulls and bears have been respecting since mid-July.
Stochastic is also on the bulls’ side as it shows an “oversold” signal on the 4-hour time frame.
Look out for a bounce that could take USD/CHF 100 pips higher to the 200 SMA.
If there’s enough momentum, the pair could even hit the big 1.0000 or the 1.0150 previous highs!
Don’t discount a downside breakout though. If you see USD/CHF consistently trading below .9850, then you better be ready to short the dollar all the way to the .9750 or .9680 previous inflection points!
CAD/CHF 4-hour Forex Chart
Who’s up for some trend plays?
CAD/CHF is finding support at .7315, which is a key inflection point that’s been holding as support AND resistance for the past couple of days.
This time, it also lines up with the support of a 4-hour ascending channel AND the 61.8% Fibonacci retracement of last week’s upswing.
Can CAD/CHF extend its uptrend? Buying at current levels would yield a good risk ratio especially if CAD/CHF revisits its November highs near .7400.
If CAD/CHF drops below the 100 SMA, though, then it could see enough selling to drag it back to the .7260 or .7200 areas of interest.