USD/CHF: Avoiding a false dichotomy
The US dollar is in a correction of its uptrend (see EUR/USD, GBP/USD, AUD/USD etc)
Do we really face a linear option of fade or no trade?
Actually, it might be a false dichotomy.
Going long EUR/USD and GBP/USD (i.e. selling USD) would mean fading the major trend (as per the weekly charts).
But going short USD/CHF (i.e. also selling USD) would not be a counter trend trade because USD/CHF is in a trading range. Selling below resistance in a trading range is a high probability setup.
We can see the topping process on the daily chart, with 0.90 as the broken neckline.
Here the risk is well defined - if the price pops back over 0.90 - the breakdown trade is no longer on but while below 0.90, 0.88 is a natural target as the last major support area and the 30 week moving average.
But - as always - that’s just how the team and I are seeing things, what do you think?
Share your ideas with us - OR - send us a request!
Drop a comment
cheers!
Jasper
Do we really face a linear option of fade or no trade?
Actually, it might be a false dichotomy.
Going long EUR/USD and GBP/USD (i.e. selling USD) would mean fading the major trend (as per the weekly charts).
But going short USD/CHF (i.e. also selling USD) would not be a counter trend trade because USD/CHF is in a trading range. Selling below resistance in a trading range is a high probability setup.
We can see the topping process on the daily chart, with 0.90 as the broken neckline.
Here the risk is well defined - if the price pops back over 0.90 - the breakdown trade is no longer on but while below 0.90, 0.88 is a natural target as the last major support area and the 30 week moving average.
But - as always - that’s just how the team and I are seeing things, what do you think?
Share your ideas with us - OR - send us a request!
Drop a comment
cheers!
Jasper
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Market Analyst for:
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wetradebroker.com/education/analysis/jasper/
SpreadEx
spreadex.com/financials
Key To Markets
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Signup to my newsletter:
tradingwriters.substack.com/
Market Analyst for:
WeTrade
wetradebroker.com/education/analysis/jasper/
SpreadEx
spreadex.com/financials
Key To Markets
keytomarkets.com/
tradingwriters.substack.com/
Market Analyst for:
WeTrade
wetradebroker.com/education/analysis/jasper/
SpreadEx
spreadex.com/financials
Key To Markets
keytomarkets.com/
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.