I spotted another USD/CHF trade!
I know I should also give other major pairs a chance but I couldn’t help but take this sweet setup on USD/CHF. The pair is currently finding support at the .8820 area, which is near a 200 SMA test, previous support and resistance area, AND rising channel support trend line. On top of that, Stochastic is also in the oversold territory!
On the fundamental side I noticed that risk aversion from Australia and China’s data misses continued to dictate market sentiment. And with the SNB saying that the franc is more overvalued in March than in February and Uncle Sam mostly printing better-than-expected reports, I think the Greenback could see more gains compared to other low-yielding currencies.
I’ve been eyeing this setup since the London session but I decided to wait for today’s manufacturing and new home sales reports. I bought at market when the news candle closed as a doji despite weak reports from the U.S. Guess risk aversion is still the name of the game!
I’m using the 1-hour chart on this quick trade so I only risked 0.25% of my account. Right now I have a stop loss 30 pips away (at .8790) and a 60-pip profit target (at .8880) for a 2:1 trade.
Hope this works out!