After getting rejected at .9370, USD/CHF has dropped by about 100 pips and is now finding some support at the .9250 zone.
Thing is, .9250 is also around a 38.2% Fib retracement and is just above a trend line support that has been keeping the dollar afloat since mid-February.
You can buy at current levels if you think that USD/CHF’s uptrend still has legs and could hit new March highs in the next few days.
Not convinced that the dollar can gain more pips on the franc? You can also wait for a clear break below the 200 SMA and trend line support and then target previous areas of interest like .9150 or .9075.
Did y’all catch EUR/USD breaking below its long-term trend line support on the daily?
In case you missed it, don’t worry. The action isn’t over especially as EUR/USD goes back to revisit the trend line area near the 100 SMA.
Will EUR/USD confirm a potential downtrend by getting rejected at the broken trend line support? Shorting at the first signs of bearish pressure around 1.2050 would give the best risk ratio if the euro starts making new 2021 lows in the next few weeks.
But what if EUR/USD’s party is far from over? Watch out for the euro trading firmly above the trend line and the 100 SMA again to see if forex bulls can take EUR/USD to its December to January highs.
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