USDCHF: A Simple Trading Plan

The Swiss Franc is trading at an important support zone (1.0701 – blue line). I like to see the market trading in a little range in the short term charts when it approaches to important long term support or resistance levels… please take a look at the next chart:



Blue line – Long term support zone
Green lines – Short term range

Here is my trading plan for the USDCHF:

If the market breaks the short term resistance up (1.0713) I will start to look for long trading opportunities.

If the market breaks the short term support down (1.0658) I will start to look for short trading opportunities.

EURUSD: A Simple Trading Plan

The EURUSD bounced from a clear long term resistance level (1.4330), but now the questions is, is this the beginning of a THE retracement? We don’t know yet, what we do know is that based on the chart bellow, it should reach at least 1.3877…



Definitely long opportunities are out of play at least for the time being, so what would be the trading plan for the EURUSD?

I will wait for the market to break 1.4107 (green support line) to look for short opportunities, if the Euro breaks this level down it should take it to 1.3868.

EURJPY: Trading Idea

The EURJPY is trading at the previous high, a pretty strong resistance zone. Yesterday the market tried to break that resistance but failed to do so, but what is more interesting is the way it came back… Now, it is trading in a tight range (green lines) and I think it is getting ready to break… but which way?



Right now I’m waiting for the market to break either extreme of the range, but here is my plan:

If the market breaks 137.24 (green resistance line – short term resistance), I will look for long opportunities and it should take it to 139.85 (upper blue line – long term resistance zone).

If the market breaks 135.71 (green support line – short term support), I will look for short opportunities, this should take the market to 128.50.

EURUSD: Long opportunities in Play

In our previous contribution about the Euro we mentioned the EURUSD was going down, at least to the main support zone located around 1.3868. Now that the market reached that level, the market is telling us that it wants to go up again, please take a look at the next chart:



Now that the EURUSD is trading just above all important levels, it should reach the next long term resistance level located at 1.4326.

So our Simple Trading Plan for the EURUSD is:

Just look for long opportunities in the short term charts (and ignore all short signals), as we said, all take profit orders will be placed just below the main resistance level located at 1.4326.

GBPUSD: Short trades in play

The GBPUSD was rejected from the long term resistance zone around 1.6620, this makes me think the market will go short in search for the next support zone, located around 1.5914. Please take a look at the chat below:



As long as the market continues to trade below 1.6327 I will look for short opportunities (already have one short). All take profit orders will be placed 40-50 pips above the main support zone.

USDCAD, Close to net Long

The USDCAD recently broke an important resistance level (blue line at 1.1298) and it appears to have more bullish momentum, but trading long is not yet recommended, I would wait for the market to break the nearest short term resistance level (green line at 1.1359).



Wait for the market to break 1.1359 and start looking for long opportunities.

EURUSD: Short or Long?

The EURUSD could break the next short term support level and validate a Head and Shoulders formation, but there is another scenario, what if the market breaks the next short term resistance level? Well that should take it to previous highs. Take a look at the next chart:



If the market breaks above the short term resistance level around 1.3932, I will start looking for long opportunities, targeting the long term resistance level around 1.4329

If the market breaks below the short term support level around 1.3798, it will validate the Head and Shoulders pattern, and I will start looking for short opportunities, targeting the long term support level around 1.3433