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Forex: Ideas You Can Trade - USDCHF Imminent Resistance on .9035

Posted by Steven Hatzakis on Jul 23, 2014 4:03:00 AM

USDCHF: Triple Top Approaching As February and June High's Near

The medium term daily candle chart below shows the price history of United States Dollars (USD) against the Swiss Franc (CHF), known as USDCHF, and trading at .9028 around time of publication today.

The pair reached a high of .9030 earlier, and is still just a few pips away from the resistance reached earlier in February this year -and again in early June -near .9035, where a triple-top may occur imminently if that line acts to reverse the upward momentum. 

Last time USDCHF was covered in the Ideas You Can Trade series, resistance on the upper line of the bearish channel (point 9 in white below on chart) appeared to reverse the uptrend, yet the pair managed to continue upward and the has since exited that channel to the upside. Then in June that bullish continuation reversed after hitting the high near .9035 described above, and which may again provide a barrier to further upside momentum.

If resistance holds at .9035 a bearish reversal will follow, whereas a break above this line would indicate a bullish continuation, if .9035 can be overcome.

Below are examples of how to trade a bullish continuation or a bearish reversal:

1.  BULLISH BUY ENTRY ORDER: Create a “Buy Entry Stop” @ .9039 with a Limit to take profit @ .9064 and a stop-loss @ .9019 Risk/Reward Summary: Limit risk = +25 pips profit / (-20) Stop-loss risk = Gain to Loss ratio =   1.25

2.  BEARISH SELL ENTRY ORDER: Create a “Sell Entry Stop” @ .8999 with a Limit to take profit @ .8980 and a stop-loss @ .9018 Risk/Reward Summary: Limit risk = +19 pips profit / (-19) Stop-loss risk = Gain to Loss Ratio =  1.00

Medium term daily candles:

usdchfdaily 23 2014 note


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