Short Swissy at Market
This is based on the setup that we looked at in our most recent Technical Analysis piece on USD/CHF. This setup is looking to capitalize on a reversal of USD-strength at some point this week while playing the longer-term price action range being seen in USD/CHF. Stops can be set above the .9948 level of resistance, which is the 61.8% Fibonacci retracement of the 2010 high – 2011 low. This level has also given two iterations of resistance in the recent months, capping gains from runs in both May and July of this year, and this was the target on one of our previous long USD/CHF positions.
Profit targets for the position will be set at .9681 to look for a better than one-to-one risk-reward on the initial scale, at which points stops will be adjusted to break-even; and secondary profit targets cast towards .9550.
Created with Marketscope/Trading Station II; prepared by James Stanley
--- Written by James Stanley, Analyst for DailyFX.com
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