USD/CHF Capped by Daily Zone and Offers Opportunity to Short

LeoFinance
4 days ago
2 Min Read
322 Words

Direct from the desk of Dane Williams.




I want to preface today's blog by saying that I'm a fool.

There is just something about pairs featuring the Swiss franc that don't seem to work for me and my trading strategy.

Maybe its the way their price action is a little more choppy than the other forex majors, I'm not sure.

All I know is that I seem to continuously get fucked over by the pair.

Okay.

So now that's out of the way, let's get into today's daily market analysis blog.

Today's pair is... you guessed it - The Swissy.

USD/CHF is on my watch list and when I saw the daily zone and the price action surrounding it, I just couldn't help myself.

Let me explain why.


USD/CHF Higher Time Frame View

Bring up that Swissy daily chart.

USD/CHF Daily:
usdchfd1.png

That low from the initial Coronavirus spike has formed the perfect zone for us.

Remember, the more pronounced the bounce off a zone, the more significant it is.

You can't get any more pronounced that that literal V-shaped rejection.

With price now below the daily zone, we're looking to only play USD/CHF from the short side.


USD/CHF Intraday View

Now drill down into the Swissy intraday view with an hourly chart.

USD/CHF Hourly:
usdchfh1.png

I don't place much weight on that channel I've thrown onto the chart, but it adds another level of confluence nonetheless.

The most important thing on this chart is the fact that price is retesting previous short term support as resistance.

Very cleanly too.


Even though the Swissy hates me, the risk:reward is certainly there.

I'll play with some stop placements and see if I can milk a 1:3 out of this one today.

Best of probabilities to you,

Dane.




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