Found a sweet forex trade setup on USD/CHF! Think the dollar is in for more gains this week?
On a technical point USD/CHF is in a very sweet spot. The pair seems to have bounced from the .9550 area, which is not only a minor psychological level but is also a mid-channel support on the 1-hour time frame. And if that’s not enough to get your bullish blood going, the level also lines up perfectly with a 200 SMA and 50% Fib support. Talk about a sweet deal!
I’m also confident that the dollar will sooner or later continue its uptrend. After all, the Fed is still leading the race to tighten among the major central banks.
And then there’s the overall risk aversion from continued uncertainty over Greece and falling oil prices. For forex newbies out there, you should know that, in times of uncertainty, low-yielding assets like the Greenback are usually bought faster than Comic-Con tickets.
Right now I’m eyeing the mid-channel level with a stop just below the .9500 major psychological level and initial profit targets around the previous highs.
What do you think of this one?