USD/CHF: further drop inbound
Updated
With the sentiment being bearish, our focus is dedicated towards entering short positions. Moreover, now that the price has reached and rejected the crucial area of resistance highlighted on the graph, we are looking into executing SELL entries and riding the potentially upcoming bearish wave with our target at the level of support portrayed on the chart.
It is also important to have an eye on the FED testimony due later today. If everything goes as planned, we can expect impulses in the pre-determined destination.
It is also important to have an eye on the FED testimony due later today. If everything goes as planned, we can expect impulses in the pre-determined destination.
Note
Our initial position on USDCHF, which is now risk-free, seems to be holding strong. That's a good start! However, things get more interesting with the second position, which experienced a sudden surge in price, despite the 0.25% hike in Swiss interest rates, forming a massive spike candle. This spike candle managed to break through the liquidity levels located above the three previous daily candles, as depicted on the 16-hour graph.Now, the second position is on the move and heading towards its pre-planned destination. The drop in price is aligning with the anticipated trajectory, suggesting that the trade is progressing according to the trading plan. Keeping a close eye on the price action and ensuring it continues to align with the projected destination.
Remember to manage your risk and keep a keen watch on any potential developments that might impact the trade. Stick to your trading strategy and make adjustments as needed to maximize your chances of success.
Related publications
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.