Daniel.Dalo
Long

USDCHF - Long opportunity at demand

FX:USDCHF   U.S. Dollar/Swiss Franc
Currently watching the 1H timeframe, as price have touched once more an important demand zone (0.9593 - 0.9620), and I was waiting for a confirmation that price might have a good bounce from this zone again. We have bullish divergence on the RSI as price touches the zone.

Price already touched the zone and booked 26 pips, but I did not take it, I am waiting for a bigger move, at least with 1st target at the supply zone above (0.9681 - 0.9698), meaning a nice 60 pips profit with 27 pips of risk, wich stands for a very nice 2:1 RR.

We know from supply and demand rules that when a level have been touched many times, demand in this case have been consumed every time, but remember that whenever price gives you clues about what it might do next, in this case, a nice bullish divergence on RSI when price is touching a demand zone. This for me is a buy opportunity, so I would take it on Monday morning if price haven´t breached the zone already.

Good luck everyone and happy trading next week!
Weak usd, falling stock market, rising bonds, rising gold...I would short any rally here, personally.
Reply
Daniel.Dalo IvanLabrie
2 years ago
Thank you for your comment, I will watch closely this pair tomorrow to see the reaction on the zone, but yes, I believe in general a downward movement should come into play, but maybe a quick retracement is enough for getting some profits out of this move. Let´s see what happens this week.

Thanks again buddy, good luck!
+1 Reply
IvanLabrie PRO Daniel.Dalo
2 years ago
Indeed, I just prefer to sell rallies and go with the major move...I don't like drawdown so I trade relatively short term and cover shorts quick and then open more lots on each pullback.
Reply
Daniel.Dalo IvanLabrie
2 years ago
What also made me doubt about the continuation to the downside in this last major swing down, is that on every retracement to the upside, price have gone up deeper every time, wich for me it means a possible exhaustion of the downtrend strength and a possible reversal could be close.

But I also like going with the major trend direction, that´s the best way to keep profits adding up and always respecting structure of the market.
+1 Reply
IvanLabrie PRO Daniel.Dalo
2 years ago
Indeed, better go with the flow until proven wrong.
+1 Reply
dionvuletich
2 years ago
possible bullish shark... ?? 0.9615? stop 0.9591 target 1 = 0.9679 target 2 = 0.9722

I am long eurusd (and a couple of other euro pairs) and have an overall long euro bias right now, but we could see a short term rally in this/ short term drop in euro before continuing lower in usdchf/ higher in eurusd
+1 Reply
dionvuletich dionvuletich
2 years ago
there could also be a 3 drives pattern from the 9th dec as well... be interesting to see what it does around 0.9615
+1 Reply
Daniel.Dalo dionvuletich
2 years ago
Thank you very much for the insight, sounds like a nice opportunity too, I will take a look and analyze that option as well :)
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