Breakout alert! Remember that USDCHF downtrend play that we talked about a few days back? Well, it looks like the bulls had more mojo than we thought!
The pair is now trading just above the .9900 major psychological handle, which is already above the channel AND the 100 SMA on the daily time frame.
Before you buy the dollar like there’s no tomorrow, though, you gotta know that the 200 SMA held the last time it was tested. Until USD/CHF makes new September highs, the bears could still jump in and drag the pair lower.
Buying at the first signs of new monthly highs would get you decent pips especially if you aim for parity or the 1.1000 previous areas of interest.