Pick of the Day: USD/CHF
It's been a quiet week so far for USD/CHF as we saw little reaction on US housing data, but that may change later today with the US Durable Goods reports. Right now, the main market theme is risk aversion as we see the Swissy and Yen rally. I think this will continue until the FOMC report later this week, so I am bearish on the Dollar until then.
So, we may see a further decline in USD/CHF throughout the Euro trading session, and if the US data comes out inline or weaker than expected we could see momentum selling occur. Now if we do see positive US numbers, we will probably see a little whipsaw action as market players limit their bets ahead of the Fed meeting.
On the chart, we can see price consolidation for the couple of trading sessions, so we may see short term volatility later this morning.
Short USD/CHF at 1.2270, stop at 1.2310, pt1 at 1.2250, pt2 at 1.2235
Remember to never risk more than 1% of your account on any single trade. Adjust your position sizes accordingly.
Good luck and Good trading!
