The dollar has gained some ground after hitting notable lows last week.
Who else is taking these upswings as “pullbacks?”
If you are, then you’re gonna love Bitcoin (BTC/USD) and USD/CHF’s 4-hour charts!
USD/CHF 4-hour Forex Chart by TradingView
USD/CHF found a bottom at .8875 last week, and it looks like there were enough bulls to push the pair to just under the .9000 mark.
Unfortunately for the bulls, the .9000 psychological handle also lines up with the 50% Fibonacci retracement of last week’s downswing.
It’s also uncomfortably close to a trend line resistance that’s been around since early March, something you don’t want the pair to be at when it’s already showing a bearish divergence with Stochastic.
Does this mean that USD/CHF will extend its weeks-long downtrend?
USD bears can take advantage of the 4-hour downtrend and sell at the first signs of bearish pressure. Last week’s lows can serve as initial targets but you can also aim for new monthly lows if there’s enough selling momentum.
Meanwhile, USD bulls can use this week’s upswing and buy some more USD/CHF until it actually hits the trend line and 61.8% Fibonacci resistance zones. You can even consider buying an upside breakout if you see enough bullish momentum!
Bitcoin (BTC/USD) 4-hour Chart by TradingView
If you’re FOMO-ing on Bitcoin’s gains and you’re still looking to buy BTC/USD, then you’ll want to look at where the pair is at right now.
As you can see, BTC/USD is consolidating at the $29,500 area that lines up with the 50% Fibonacci retracement of last week’s upswing.
If you believe that the higher lows, bullish divergence, and the simple moving averages pointing higher mean that the uptrend remains intact, then you can start scaling in at current levels and aim for last week’s highs.
You can also wait for a pullback to areas of interest like $28,750 if you think that BTC will see some more selling before trading higher.
Feel like BTC/USD has seen its short-term top and that the pair will extend its weekly downswing?
You can also bet on a short-term reversal especially if you see BTC/USD breaking below its trend line and SMA support zones.
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