USDCHF reached our profit target perfectly, time to start sellin
Sell below 1.0090. Stop loss at 1.0118. Take profit at 1.0033.
Reason for the trading strategy (technically):
Price has reached our buying area, bounced perfectly and reached our profit target from Friday. We now turn bearish below 1.0090 resistance (Fibonacci retracement, horizontal pullback resistance) where we expect a reaction from for a drop to 1.0033 support (Fibonacci retracement, horizontal support).
Stochastic (21) is seeing strong resistance at the 94% level.
Reason for the trading strategy (fundamentally):
The main news event today is the U.S. Durable Goods Orders. Durable goods are typically sensitive to economic changes. When consumers become sceptical about economic conditions, sales of durable goods are one of the first to be impacted since consumers can delay purchases of durable items, like cars and televisions, only spending money on necessities in times of economic hardship. Conversely, when consumer confidence is restored, orders for durable goods rebound quickly. The headline figure is expressed as a percentage change from previous months. A decrease in this value would mean a weaker USD. Forecasts for this month is expecting a significant rise from last month which means a stronger USD. This goes against our bearish USDCHF view, hence, it is important to exercise caution on this trade.
Reason for the trading strategy (technically):
Price has reached our buying area, bounced perfectly and reached our profit target from Friday. We now turn bearish below 1.0090 resistance (Fibonacci retracement, horizontal pullback resistance) where we expect a reaction from for a drop to 1.0033 support (Fibonacci retracement, horizontal support).
Stochastic (21) is seeing strong resistance at the 94% level.
Reason for the trading strategy (fundamentally):
The main news event today is the U.S. Durable Goods Orders. Durable goods are typically sensitive to economic changes. When consumers become sceptical about economic conditions, sales of durable goods are one of the first to be impacted since consumers can delay purchases of durable items, like cars and televisions, only spending money on necessities in times of economic hardship. Conversely, when consumer confidence is restored, orders for durable goods rebound quickly. The headline figure is expressed as a percentage change from previous months. A decrease in this value would mean a weaker USD. Forecasts for this month is expecting a significant rise from last month which means a stronger USD. This goes against our bearish USDCHF view, hence, it is important to exercise caution on this trade.
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