Yesterday, the USDCHF currency pair touched the support level of 0.945 for the first time since April last year. And a "hammer" reversal pattern was instantly displayed on the daily chart signaling a possible decline in the pair.
Plus, a sell signal formed, a Bollinger reversal: the closing price of yesterday's trading, as during the previous three days, is above the upper Bollinger band and values of the Accumulation/Distribution indicator are negative.
What are the trading options with the current conditions?
1. Selling the USDCHF currency pair from the market at the current price. Take Profit 1: around 0.935. Take Profit 2: around 0.925. Take Profit 3: around 0.917. Stop Loss: above 0.955. Next, Trailing Stop.
2. SellLimit is near 0.945. Take Profit 1: around 0.935. Take Profit 2: around 0.925. Take Profit 3: around 0.917. Stop Loss: above 0.955. Next, Trailing Stop.
Fundamentally, the US economy seems to be a little more attractive than the Swiss economy. Although, the role of the franc as a defensive asset in times of growing uncertainty should be kept in mind and this is highly relevant today.
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