CHF/SEK: Long Opportunity on Multiple Timeframes
I decided to open a long position on CHF/SEK based on two key technical signals that occurred on multiple timeframes.
1. Breakout of Resistance on Hourly Timeframe
On the 1-hour chart, the price broke a significant resistance, signaling a possible continuation of the uptrend. This breakout was confirmed by an increase in volume and the formation of a clear bullish candlestick above the previous resistance. The breakout of these key price levels suggests strong buying pressure.
2. Upside from Oversold Level on 4-Hourly Timeframe
On the 4-hour timeframe, the stochastic oscillator shows that the price has recently broken out of the oversold zone, confirming a possible reversal to the upside. Furthermore, the price is breaking above the long-term moving averages, such as the 50 and 200 periods, further reinforcing the idea that we are in a moment of strength for the CHF versus the SEK.
Trading Strategy
Entry: After the breakout on the 1-hour chart, I set my entry above the confirmed resistance.
Stop Loss: I placed a stop loss below the most recent low to limit the risks in case of retracements.
Target: The target was calculated considering a risk/reward ratio of 3:1, in line with the favorable technical backdrop.
Fundamental Motivation
In addition to the technical signals, there is a possible fundamental support given by the relative strength of the Swiss franc in the context of economic uncertainty. This makes the CHF a safe haven and potentially appreciable in the coming days.
Conclusion
This setup represents a great long trading opportunity on CHF/SEK, supported by consistent technical signals on multiple timeframes. I continue to monitor the price behavior for any adjustments to the position.
