This is a very straightforward trade. Following CHF's weakness today across major pairs and a mild USD rally, FX:USDCHF is now back at the top price levels since March 2017, repeating itself over 5 times already. There were a series of higher lows and approximately same highs, forming an on a macro level but a slight once you zoom in, this represented on the charts by the dotted . The chosen timeframe here is the since it more accurately presents our point of view, containing more information and reinforcing the 4h analysis.
How to proceed:
Our team already opened two short positions with two more orders pending: one at the immediate resistance and another at the upper resistance, both shown on the graph.
Should all 4 orders trigger, our first take profit is an interaction with the first dotted trendline: approximately 80-100 pips. The next level should be the interaction with the second and the rest will be set with a 40 pips trailing stop-loss. Move stops to profit once at least 25-50 pips in profit. This is represented by the arrows.
Stop-loss (invalidation of analysis):
Should it surpass the top , a stop-loss for all orders is set on 1.02. By then we will reavaluate the market conditions and make decisions accordingly.
We usually prefer naked charts, but the chosen indicator here is the ( ), since it corroborates our bias.
Switzerland has an export-based economy that relies heavily on its to maintain competitivity on international markets. The SNB (Swiss National Bank) actively interferes in its currency price, often undermining it to enhance the country's exports. By the, a correction is due and this is the precise moment we stand on.
Please leave your comments below and don't forget to follow us! Have a great trading session!