USDCHF Ready for Another Trip

The USDCHF has been trending downward since December of 2016, and has established itself in a very nice channel. It recently rode up to the top of the channel and is now looking good for its next trip back to the bottom. Of course, we have seen a weakening USD lately, and in fact the CHF was the exception in the last week or so in that it weakened against the USD as other currencies did the opposite. All the more reason for a correction to take place on this pair soon.

Look to sell (short) immediately at or around 0.9730 with an exit target at 0.9450, which is close to the bottom of the channel. A good stop loss would be about 100 pips above current price, at 0.9830 or higher, depending on your equity management and risk tolerance.

This looks to be a decent opportunity for about 300 pips of profit with a low risk.

Edit 08/11/2017 at 1:00 AM US ET:

This pair has moved significantly since we alerted, but has still a ways to go to hit our expected target. As we move into the last trading day of the week, you may a) take your profits off the table and avoid staying in over the weekend or b) let it ride and trust in the technical analysis. Always your choice as traders. At this point there are about 110 pips of profit if you entered when we alerted. Perhaps more if you entered late. It rose about 30 pips after we alerted, before it started dropping.

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Andres Pedraza

Director at Special FX Academy

Founder and Director of Special FX Academy, Andres is now a full time trader, mentor, and writer. In the past, Andres has held director level positions at venerable trading exchanges including New York Stock Exchange, Euronext, and Fannie Mae. Buy his Forex Trading book here!

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