I heard a classic line on the Sky business channel on Friday that almost certainly applies to me.
" When a perennial bear is thinking about buying, it's time to sell"
Well after all the big bullish moves last week how can one not be contemplating buying this upcoming week. Euro stress tests were good depending on your interpretation off course. IMF reports larger USD short positions then the week before. All this points to a buyers market, thus setting up the BEARS to crash the party!
Well maybe not, who knows in this crazy world of forex?
I've been watching the GBP/CHF for the past 2 weeks and wanting to buy as it looked like it had bottomed out. The double bottom on the daily candle Friday morning gave a clue and then bang it goes wild bull for over 300 pips. The CHF has been king over the past month or so but looks like it's run out of puff.
So it's now to dear to buy, I'm expecting a pull back to the 1.6100 zone which was resistance now turned support.
Looking at the hourly and 4 hour charts and the 1.6300 area looks like a massive resistance zone.
I'm contemplating shorting from there back to 1.6100. It's in massive bull mode, though it is fast approaching this area I will not set up a pending order trying to stop a speeding train however tempting it is. I will wait for a 4HR reversal candle. Failure to penetrate and close above 1.6310 which is also a 38.2 fib will represent a good opportunity to short back to 1.6100 with good RR.4 hr chart below
" When a perennial bear is thinking about buying, it's time to sell"
Well after all the big bullish moves last week how can one not be contemplating buying this upcoming week. Euro stress tests were good depending on your interpretation off course. IMF reports larger USD short positions then the week before. All this points to a buyers market, thus setting up the BEARS to crash the party!
Well maybe not, who knows in this crazy world of forex?
I've been watching the GBP/CHF for the past 2 weeks and wanting to buy as it looked like it had bottomed out. The double bottom on the daily candle Friday morning gave a clue and then bang it goes wild bull for over 300 pips. The CHF has been king over the past month or so but looks like it's run out of puff.
So it's now to dear to buy, I'm expecting a pull back to the 1.6100 zone which was resistance now turned support.
Looking at the hourly and 4 hour charts and the 1.6300 area looks like a massive resistance zone.
I'm contemplating shorting from there back to 1.6100. It's in massive bull mode, though it is fast approaching this area I will not set up a pending order trying to stop a speeding train however tempting it is. I will wait for a 4HR reversal candle. Failure to penetrate and close above 1.6310 which is also a 38.2 fib will represent a good opportunity to short back to 1.6100 with good RR.4 hr chart below