USD-CHF Finding Resistance at the higher of current Retracement
Trading should be easy and it should be fun. If you are not finding it to be this way, there is something you are doing wrong and you need to figure it out and fix it. We have got another set up that has completed on the USD-CHF cross. One way to make trading any of the G7 pairs easy is to know what the DXY index is doing. Once you know what this index is doing, there is no thinking that is required on your part to trade any of the majors. You simply trade, as if you are taking a walk in the park on a beautiful sunny Sunday afternoon, you simply walk. No need to think about the walking. Currently the DXY is in a down trend. It has found some resistance and is resuming its move to the down side. It is this resistance that is fuelling the current moves on the GBP-USD , EUR-USD , AUD-USD and NZD-USD pairs and also dragging the current moves on USD-CAD and USD-CHF . USD-JPY is behaving rather strangely. Given this framework within which to analyse your trade, USD-CHF has made a deep retracement to Fib 23.6, it has made a counter to the down side giving us all our three entry values before we jump into the trade. As shown on the chart, our STOP was given @ 0.9675,which is the higher of the U-turn, our TARGET is @ 0. 9502 , which is the Fib extension that is relative to Fib 23.6 retracement resistance and our ENTRY is @ 0.9646, giving us a low risk, 29 pips, higher return, 144 pips trade. I normally prefer to place my initial STOP above the Fib 100 shown on the just before adjusting it to the higher of the U-turn once the trend has solidified itself in is resumption. This helps to protect you from being taken out when price tests the backside of the counter before resuming the main move. I hope this little helps. Happy trading at all times traders.