Direct from the desk of Dane Williams.
One pair that has been in-play recently, is USD/CHF.
ICYMI here is the USD/CHF narrative we've been following on the blog:
In short, we have had the Swissy capped by higher time frame resistance and then found a nice short term zone to get short off on the hourly.
The first entry played out nicely, hitting our take profit target with minimal drawdown.
But it seems that the Swissy isn't finished yet.
Taking a look at how the pair ended the week, maybe my disdain toward the Swiss pairs is all inside my head after all.
Let me show you what I'm talking about below.
In our USD/CHF original analysis blog, I posted the following daily zone:
USD/CHF Daily:
That low from the initial Coronavirus spike has formed the perfect zone for us.
We use the higher time frame zones to determine which direction we want to be trading in.
As we're capped by higher time frame resistance, in this case we're looking only for shorts.
Now zoom into the intraday, hourly view.
I've quoted the following charts so you can see how the setup progressed from start to finish.
1. Original USD/CHF hourly chart quoted from my first analysis blog:
USD/CHF Hourly:
2. Updated USD/CHF hourly chart quoted from my next trade analysis blog:
Updated USD/CHF Hourly:
Now take a look at the current USD/CHF hourly chart below, showing price continuing to step down in perfect technical fashion.
Current USD/CHF Hourly:
If you were holding your original USD/CHF short with a stop at break even, then you have added another couple of units of reward to your trade.
I guess it seem that if I needed any more convincing my disdain toward the Swissy was irrational and all inside my own head, then Friday's price action is the kicker.
Such clean price action.
Best of probabilities to you,
Dane.
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