EURCHF - Short potential
Not a pair that we usually look at but its proximity to some key levels and the momentum it saw last week makes it an attractive prospect this week. There isn’t any need to over complicate this as it’s a simple trade however there are a few areas that may present additional entries but before we look at these levels it’s important to note that these levels may also act as support for the pair and as such, we may need to take profit off the table at any of these areas instead of adding positions. First up we have the significant level at 0.9880, given the fact that we closed extremely close to this level on Friday night we would like to see a little push higher into somewhere around 0.9920 before using this as our first entry but if we do see a push higher and then a break below 0.9880 then we should be able to enter a short position with a relatively tight stoploss. Our next entry / target area is at 0.9820, breaks below this level and ideally a retest and rejection will give us a chance to enter an additional position as this would be a breakout of Decembers previous range and will likely lead to a fallout down to 0.9780 at least. 0.9780 will be our next entry / target area, unlike before where we will be best served to await the breakout and retest, this level is unlikely to need to be treated in the same way and we should be able to just place a sell stop and let it play out from here. 0.9720 is our final entry / target area and a breakout, retest and rejection of this level is likely to push price into our final target at 0.9650, at this point we will be closing all positions and taking our profit off the table ready to await clues of the pairs next leg.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.