Background
Ahead of Monday's US opening, USDCHF has been trading with plenty of two-way interests, with the upside in the cross so far capped by the first wave resistance level in the 0.9037 - 0.8856![]()
0.9037 - 0.8856 wave. With the overall technical trend still trading with a clear negative bias, however, we are now looking for a pro-trend move on the downside. In particular, we are looking for a potential break through the 0.8855 level to re-accelarate the selling momentum in the cross. We shall only establish, however, a short-positioning in USDCHF at the aforementioned break level.
Management and risk description
We are maintaining reduced overall risk exposure and are sizing this trade as a half nominal size order. We shall also protect the trade with a tight stop-loss order, which we shall adjust to entry level upon hitting the first profit target.
Parameters
Entry: sell half-size order USDCHF top offer at 0.8855.
Stop: buy USDCHF stop bid at 0.8870.
Target: first target is at 0.8840, where we shall lock in half-gains and move the stop to entry. Second target is at 0.8815.
Time horizon: intraday.
Short-term USDCHF chart
5-year USDCHF chart
Ahead of Monday's US opening, USDCHF has been trading with plenty of two-way interests, with the upside in the cross so far capped by the first wave resistance level in the 0.9037 - 0.8856
0.9037 - 0.8856 wave. With the overall technical trend still trading with a clear negative bias, however, we are now looking for a pro-trend move on the downside. In particular, we are looking for a potential break through the 0.8855 level to re-accelarate the selling momentum in the cross. We shall only establish, however, a short-positioning in USDCHF at the aforementioned break level.Management and risk description
We are maintaining reduced overall risk exposure and are sizing this trade as a half nominal size order. We shall also protect the trade with a tight stop-loss order, which we shall adjust to entry level upon hitting the first profit target.
Parameters
Entry: sell half-size order USDCHF top offer at 0.8855.
Stop: buy USDCHF stop bid at 0.8870.
Target: first target is at 0.8840, where we shall lock in half-gains and move the stop to entry. Second target is at 0.8815.
Time horizon: intraday.
Short-term USDCHF chart
5-year USDCHF chart
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