It’s been a wild ride for the US dollar recently – first it goes up, then the next minute it’s dropping like a rock! Can the market please make up its collective mind?! Hehe Well, for tonight’s pick, we’re going to take a look at USD/CHF. This pair has been has been on a wild ride, and now it’s making its way back down. It has hit the trendline drawn on the hourly chart and found some resistance there. Will it hold and shoot back up or will it continue to drop and break the trendline? Honestly, it’s hard to tell. Tomorrow we have US durable goods forecasting better than previous numbers, and the US new home sales forecasting slightly worse than previous numbers. We could see a mixed market and some range trading if the numbers come out as forecasted. If both reports come out with worse than expected numbers it should fuel continued weakness in the US dollar. Because the pair is trending upwards, I will look for a long trade, but we should also have a short trade idea ready in case of weak reports for the US economy. Here’s a couple of ideas.
Long USD/CHF at 1.2435, stop at 1.2410, pt1 at 1.2450, pt2 at 1.2490
Short USD/CHF at 1.2385, stop at 1.2410, pt1 at 1.2355, pt2 at 1.2315