I’m Brad and in today’s Market Outlook, let’s take a look at Forex Trading on GBPCHF, USDCHF, and the NASDAQ.
Firstly, Happy New Year to you all and welcome back to trading.
Secondly, the Santa Claus Rally ended right on schedule with a big sell-off in the US stock markets yesterday.
If you want to trade the technicals on the NASDAQ, for example, just keep an eye on the stochastic oscillator and wait for an upturn from oversold, and some bullish indication from MACD.
If you want to buy the dip on the daily chart let’s see if price action rebounds to the upside and the stochastic oscillator turns up from oversold.
This sudden sell-off has strengthened the USD which could be temporary.
If so, watch for opportunities like this on USDCHF where price action may want to turn to the downside and we are seeing the stochastic oscillator looking very overbought.
In general, CHF is strong so it could just happen soon.
But watch out for US economic news all week especially the Non-Farm Payrolls this Friday which always causes volatility.
We see a similar situation on GBPCHF and, here as well, we will want to wait for some bearish indications before going short.
