I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Buy USD/CHF
The buck seems to have found support close to 1.12 against the Swiss franc. This pair has been in strong downtrend lately due to the aggressive scaling back of high-yield and carry trade positions over fears of slowing global economic growth. Any time traders get scared, the Swissy usually benefits because this is the currency of choice for traders to run and hide in.
While I'm not sure that this downtrend is over, I do think a short-term correction is a possible. There is support at 1.12 and bullish divergence has formed with price falling but the oscillator rising.
I feel this pair will try and re-test its immediate support at 1.1250 so I'm going to wait for temporary weakness and buy at 1.1250. My stop loss (SL) will be 1.1180, which is just below the 1.1200 support. My initial profit target (PT) will be 1.1450, near its 38% Fib level. I will trail my stop to breakeven once my risk is covered. As usual, I will post any trade adjustments in my comments section below.
Buy USD/CHF @ 1.1250 | SL: 1.1180 | PT: 1.1450
