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We have a lot of reports due this NFP week so I decided it’s probably better to put on shorter-term trades than to commit to a trade bias.

USD/CHF 1-Hour Forex Chart
USD/CHF 1-Hour Forex Chart

This time I’m looking at a possible short on USD/CHF. The pair is right at the 61.8% Fib on the 1-hour chart, which had served as a pretty strong support level last month. Not only that, but the area also coincides with a retest of a falling trend line on the 4-hour chart and is also near where the 100 and 200 SMAs are. Last but not the least, there’s a possible bearish divergence on the chart.

On the fundamentals side I’m looking for a continuation of yesterday’s risk-friendly action. This could further weigh on the dollar and drag USD/CHF down. And then there’s the ADP and ISM non-manufacturing reports due at 1:30 pm GMT and 3:00 pm GMT respectively. Both reports are a bit lower than their readings last month.

For the reasons above I decided to risk 0.50% and short the pair at market (.8873). I placed my stop loss 50 pips away and my profit target around last week’s lows.

What do you think of this setup? Is this something you would take?



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This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.