Our Ducks Are in a Row as the Currencies Are Ready for Their Next MovesBy comparison to quite a few previous sessions, yesterday’s one might seem uneventful.
That was not the case, however. The markets never sleep – they offer plenty of insights, hinting at their next moves. Evaluating these, and the directions they point to bring strong rewards. We’re ready for the powerful opportunities identified. Let’s go!
EUR/USD – Resting at Resistance?
While EUR/USD closed yesterday above the 61.8% Fibonacci retracement, the upper border of the rising orange trend channel has again stopped the bulls. The resulting pullback took the pair below the retracement and at the moment of writing these words, the exchange rate trades right at it (at around 1.1390).
A more sizable correction will be more likely and reliable only once we see the pair close today, or in the coming days, below the retracement. Should we see such price action, we’ll consider opening short positions.
USD/CHF – Support Reached. Now What?
Both the above daily charts differ only in their starting point. Zooming out, we see that the breakdown below the rising green support line was followed by an unsuccessful comeback above it. Then, the pair has moved sharply lower, reaching the green support zone and also testing the 50% Fibonacci retracement in the process.
Coupled with the positioning of the daily indicators, the odds of a reversal and a bigger move to the upside in the very near future have risen. Should we see more bullish factors and signs emerge, we’ll consider opening long positions.