I am expecting DXY to make small move back up to around 97.39, which will be followed by a decline to around 96.5. USDCHF has been ranging between .96 and .97 for the last few days and seems very reluctant to break upwards towards .98. In addition to this, the RSI is recovering overbought conditions on the H1 and heavily bought conditions on the H4.
I believe this will cause the dollar to weaken against the swiss franc over the next day or two and retest the bottom of approx .96131. From there on, we can see how it reacts to the strong support at .96131 to determine whether it will continue down to approx .955, or conversely make another move back to .97 and hopefully above.
SELL LIMIT @ .97031
SL @ .97463
TP1 @ .96733
TP2 @ .96151
Risk/Reward ratio 2.05
Trade at your own risk
I believe this will cause the dollar to weaken against the swiss franc over the next day or two and retest the bottom of approx .96131. From there on, we can see how it reacts to the strong support at .96131 to determine whether it will continue down to approx .955, or conversely make another move back to .97 and hopefully above.
SELL LIMIT @ .97031
SL @ .97463
TP1 @ .96733
TP2 @ .96151
Risk/Reward ratio 2.05
Trade at your own risk
Trade closed: target reached:
TP1 reached
'In addition to this, the RSI is recovering overbought conditions on the H1 and heavily bought conditions on the H4. '
By this, I meant the RSI on the DXY chart. Apologies