The swissy has bounce considerably higher and into resistance that I have been waiting on. A good friend of mine and I instant message from time to time through Gmail and he’s just getting back into trading from a work-related hiatus. He’s getting his chops back quickly too. He bought into the rally on the pair and was well ahead of his entry and in trade management mode; trailing his stops he was still leery of where prices could abruptly stall and potentially reverse…and like all of us, no one like to give pips back. So initially his hesitation came as prices stalled around 0.9150.
At that point I offered my two cents which was to treat the buy as a swing entry and look at the 34EMA Wave support of either the five, 15, or 30-minute time frame.
I preferred the 15 or 30-minute because it offered the pair more wiggle as compared to the five-minute chart. I also added that the rally was heading into resistance between the 20 period SMA and 34 period EMA low on the daily chart and this was a swing short entry. Therefore my recommendation was wait for the pair to travel to 0.9200
Here are my exact messages:
and then again a couple hours later…
So here we are as the week’s trading wraps up: with an entry short based upon the USD/CHF downtrend correction into the 34EMA Wave and 0.9200 major psychological level.
I’d like to see the continued flattening out of the 34EMA Wave across the short-term time frames as well a selling pressure at the 0.9200 level. The U.S. Dollar Index also reached the resistance of the 34EMA Wave triggering a swing short of its own and this selling pressure as well as the retreat lowe from 76.50 bodes well for my daily swissy short.