Pick of the Day: USD/CHF

We’ve seen a strong rise in the US dollar recently, mostly due to the crisis in the Middle East, as traders rush to the greenback for safety. Now, as we look at the 1 hour chart on USD/CHF, it seems the US dollar has stalled in its rise, indicating it may be short term overbought. This is backed up by the stochastic indicator at the bottom currently in the overbought territory. I will be looking for a short term move to the downside as traders lighten up their positions to take profit. Before entering this trade, please be aware of US economic reports starting with Produce Price Index at 8:30 am EST and the TIC report at 9:00 pm EST. You may want to adjust positions to lock in any profit during that time period.

Short USD/CHF at 1.2455, stop at 1.2490, pt1 at 1.2435, pt2 at 1.2405

Good luck and good trading!