USDCHF: Bears Taking Over as Yesterday's Low is Broken and Near New Session Lows
The medium term daily candle chart below shows the price history of United States Dollars (USD) against the Swiss Franc (CHF), known as the USDCHF pair. Today the pair has again turned bearish, and past through yesterday's low, and near new session lows for the day just above .8800. USDCHF is currently trading at .8820 (around time of publication), with a low of .8813 reached just minutes ago.
Last time the pair was covered in the Ideas You Can Trade series, the target of .8800 was noted and a bullish continuation followed after support had been found around March 13th lows.
If .8800 fails to hold or reverse the downtrend of the last two candles, then .8750, and .8700 may be the next level that USDCHF may look to pivot.
If the bullish momentum of recent weeks can be regained with support above .8800 holding, then the high just a few pips under .9000 that occurred a few days ago may be retested.
Below are examples of how to trade a bearish continuation or a bullish reversal:
1. BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ .8852 with a Limit to take profit @ .8874 and a stop-loss @ .8836 Risk/Reward Summary: Limit risk = +22 pips profit / (-16) Stop-loss risk = Gain to Loss ratio = 1.37
2. BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ .8797 with a Limit to take profit @ .8776 and a stop-loss @ .8815 Risk/Reward Summary: Limit risk = +21 pips profit / (-18) Stop-loss risk = Gain to Loss Ratio = 1.16
Medium term daily candles: