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.
Warning!
Trading on financial markets involves a high level of risk and may lead to a loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.
This content is for informational purposes only and is not intended to be investing advice.
