USDCHF - Bears taking control

The Swiss has been moving in a tight range over the past few days. However, you cannot quite ignore the fact that a bearish momentum is slowly taking shape.

USDCHF - Shorting the pair

Previously, we were long on the Swiss franc but an hour ago, closed all the long positions and have now entered short.

The likely price target is 0.93525 and the chart below shows the triangles on the 4-hour chart.

A conservative trade would be to short this pair around the 50% level of 0.94593 with take profits set to 0.938. It will take a while for this pair to clear the trade though, so once the trade is opened, expect to see quite some swaps being deducted. That being said, we can expect the Swiss franc to drop quite a bit during next week.

Trading Triangles - USDCHF Trade

I just posted a trading method here. Its an old, tried and tested method and I was reminded of it when I was reading the April issue of tradersonline-mag.com.

So I decided to take on a trade for USDCHF (which has been a bitch in the last few days), because this trade really annoyed the hell out of me. I had gone short couple of days back and price was moving in a really tight range. And on top of this I had added to my positions, so you can imagine how difficult it was to see the trade move to positive pips.

Thanks to Stochastics, I would have given up on this trade and taken my losses, but better sense prevailed.

So I decided to whack the hell out of USDCHF. Below is the chart with a Pending SELL order (it will take a few days for the order to be triggered).

Trade Recommendation
Pending SELL Order
Entry: 0.935
Stop Loss: 0.95122
Target: 0.915

Well, I already entered this trade (on a demo account) just to see how it will work out because currently price is about 189 pips away from our entry. Let's see how it goes. I'm expecting to ride the USDCHF once it bottoms out, because from a Wolfe Wave perspective, it would mark the beginning of the trade from Wave 5 (which is where our target price is).

So if I managed to make some pips on both the short and future long entry, I think I would have taken my revenge on Swiss Franc.

Trade Analysis, USDCHF, GBPCHF, EURUSD

Follow up to the trade set ups for the above pairs posted here, this is an analysis of these trades.

USDCHF - It seems like the pair is running out of steam. On the daily charts, we see price coming quite close to the 0.94624. In my analysis I mentioned that price could touch 0.93426. So this was a good trade. For now, we will wait until end of Monday or Tuesday to see if there is any new Wolfe wave patterns coming up.

GBPCHF - Our target price of 1.42887 hasn't been reached yet. We saw a bit of a bearish run to 1.40943 area. As I mentioned a potential entry at 1.41547, price is currently at 1.41642. The 76.4% level at 1.42104 needs to be breached in order to reach our target price. On the contrary, we could see price drop to 1.41120 area before going back up again. On the H1 chart, we have the 50% Fib level at 1.41493 and also we need to wait for the Schaff Trend Cycle to turn bullish. There is still some time for traders to enter this trade.

EURUSD - We expect this pair to drop sharply, however, there was a bit of a bullish run towards close of markets on Friday. The H4 chart still shows a bearish bias, but it can get tricky because on the H1 chart, we noticed a bullish climb on the Schaff Trend. Either ways, I don't expect EURUSD to go beyond 1.30763.

Wait for the H1 to turn bearish to get back into the trade with Stops placed at 1.3058

USDCHF - Trade Analysis, 01/03

0.94233 is proving to be a hard zone for the pair to breach. The first attempt failed and now the pair is going for a second try. I think it will take a few more kisses before this level can be breached. Placing pending LONG orders couple of pips above this level or waiting for a new candle to open comfortably above this level (a conservative approach) could enable those to get back into this trade.

The target price we're looking at 0.94694 through 0.94861.

Potential Trade Set ups 01/03

There are three really nice trades getting ready. If you have been following my previous posts, you might have guessed that USDCHF, GBPCHF and EURUSD are the three pairs in question.

Let me quickly run you through the set ups.

USDCHF - Bias is Bullish
Currently going through a retracement on the H1 chart. H4 Chart looks steadily bullish. Same with the Daily chart.

It is likely that price could touch 0.93426 or go lower to 0.93283 before going bullish again.

Placing LONG pending orders at both these levels is a decent entry. In terms of position size, let the first level be smaller lot while the second entry be a 1 Lot set up. Either ways, use caution. Stop loss should be 0.92789, yesterday's low.

GBPCHF - Bias is Bullish
Currently going through a retracement on the H1 chart. Price is expected to fall through to 1.41547 or in that region. Our target price is 1.42887.

Place LONG orders at or around the 1.41547 region. A definite confirmation would be 1.423 level.

EURUSD - Bias is Bearish
We expect EURUSD to drop to 1.29 region sometime mid March. Price is currently at 1.307 region. H4 shows a bullish Schaff Trend. So we must wait for the STC to turn bearish. H1 is also bullish, just crossing the 90 region on the STC.

Once H1 and H4 turn bearish, we are good to go.

Potential price entry would be 1.31161 or 1.3018. Our target price would be 1.33169. Its a bit too wide, but use judgement and place your stop accordingly. Yesterday's high was 1.31631, so this can be used a stop level as well.

If you want to grab a cup of coffee or do some errands, now is the right time. Expect some action towards the mid London trading session and definitely during the US trading session.

More to follow towards the end of the day.