Forex Update: Day Trading USD/CHF’s Downtrend

Looks like I got another win with USD/CHF!

As I mentioned last week, I shorted the pair at market (.9064) for a day trade because I believed that the weak US reports would sustain the bad vibes for the dollar for the rest of the week. Not only that, but USD/CHF was also near significant resistance areas.

USD/CHF 1-Hour Forex Chart

USD/CHF 1-Hour Forex Chart

Interestingly, risk aversion dominated for the rest of the day. Rumors came out that Ukraine had had to destroy a column of Russian armored vehicles controlled by pro-Russian rebels. The dollar would have been a good bet against higher-yielding currencies but US equities and Treasury yields had also taken hits at the time. As a result, USD/CHF easily dropped to the bottom of the channel that we were watching.

I closed the trade as soon as the pair hit a support area. I was only looking for a quick day trade after all. I closed the position at .9034, which gave me a neat +0.29% on my account. Not bad for a day trade, right?

How about you? Did you catch any of the risk aversion action from last Friday?

XOXO,

Huck

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