USDCHF testing major resistance, prepare to sell
Sell below 1.0100. Stoop loss at 1.0160. Take profit at 1.0000.
Reason for the trading strategy (technically):
Price is now testing major resistance at 1.0100 (Fibonacci extension, horizontal swing high resistance) and we expect a drop from this level to at least 1.0000 support (Fibonacci retracement, horizontal overlap support).
Stochastic (34,5,3) is seeing major resistance below the 97% level where we expect a drop from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they usually move in opposite directions. We’re expecting a rise in EURUSD which goes in line with the drop we’re expecting on USDCHF.
Reason for the trading strategy (fundamentally):
The main news event driving USD today is the U.S. Advance Retail Sales which is a monthly measure of sales of goods to consumers at retail outlets. The figure is a significant market mover, valuable both for its timeliness and insight into consumer demand and consumer confidence. We’re expecting a positive value here meaning more consumer spending and confidence, leading to strength in the USD. This would go against our bearish USDCHF view today hence is it best to exercise caution on this trade.
Reason for the trading strategy (technically):
Price is now testing major resistance at 1.0100 (Fibonacci extension, horizontal swing high resistance) and we expect a drop from this level to at least 1.0000 support (Fibonacci retracement, horizontal overlap support).
Stochastic (34,5,3) is seeing major resistance below the 97% level where we expect a drop from.
Correlation analysis: EURUSD and USDCHF are negatively correlated, meaning they usually move in opposite directions. We’re expecting a rise in EURUSD which goes in line with the drop we’re expecting on USDCHF.
Reason for the trading strategy (fundamentally):
The main news event driving USD today is the U.S. Advance Retail Sales which is a monthly measure of sales of goods to consumers at retail outlets. The figure is a significant market mover, valuable both for its timeliness and insight into consumer demand and consumer confidence. We’re expecting a positive value here meaning more consumer spending and confidence, leading to strength in the USD. This would go against our bearish USDCHF view today hence is it best to exercise caution on this trade.
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.