Never miss a story from John Kicklighter

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to John Kicklighter

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

It is a rule of mine - that has grown more important in recent market conditions - that I seek out uncomplicated trade setups. This is a probabilities game; and the more variables there are to deal with, there is more that can undermine your analysis and position.

Avoiding the high profile and all-consuming themes nowadays is not easy. We have trade wars affecting the Dollar and export-dependent contries. Risk trends are a clear driver given February and March's volatility which has in turn triggered heavy moves from the Yen, Aussie and Kiwi crosses. And monetary policy seem tinder box for many. It is impossible to fully get away from the unknown, but where you can simplify the picture, you will find better probably trees.

One currency that has plenty of liquidity but little of its own traction - thereby offering a strong soundboard for a more driven counterpart - is the Swiss Franc. Looking for a counterpart that has a great technical backdrop and an active but refined fundamental cue, we are met with GBP/CHF. This pair has tentatively put in for a triple top at a long-term 50% Fib just shy of 1.35000. I'm more conservative by nature so, I'll look for a break of 1.3350/25 as a sign of conviction in a range turn. Brexit is an unknown for this pair, but it is not currently under power and is fairly easy to keep tabs on. I made a more indepth Quick Take Video on this pair.

Daily Chart of GBP/CHF

Perhaps an even better counterpart for the Franc - a currency that has potential for recovery by virtue of its collective fundamentals improving with price notably lagging - is the Canadian Dollar. Its rate forecast has impoved, the US metals tariffs were headed off and optimism is starting to bubble up out of NAFTA discussions. The recent rebound in the broad range from CAD/CHF has brought us to horizontal resistance of 0.7425. A break of this resistance alongside a fravorable CAD wind would be appealing. I'll use a 100-125 pip stop if I go in.

Daily Chart of CAD/CHF

Two other Loonie crosses to keep an eye on include the GBP/CAD and NZD/CAD pairs. The former will deal with Brexit as an anchor like all Sterling crosses, but clearing 1.8000 support would be a strong cue. Between the two, NZD/CAD is more appealing with the Kiwi adrift with technicals more readily guiding the way. That is appealing with a broad range resistance holding, a rising trend channel giving way this past week and a larger Fib setting the next progression of turn - and likely my entry point - at 0.9280.

What makes for a 'great' trader? Strategy is important but there the most important limitations and advances are found in our own psychology. Download the DailyFX Building Confidence in Trading and Traits of Successful Traders guides to learn how to set your course from the beginning.