Trend warriors gather!
May was a good month for USDCHF as it rebounded from lows of 0.850 to current levels near 0.9150.
That’s a cool 300 points in a few weeks!
USD/CHF daily forex USD/CHF daily forex Planned by TV
What makes the setup interesting today is that the USD/CHF is knocking at the 50% Fibonacci retracement of the March-April pullback.
Not only is 50% Fibonacci near the resistance of the 100 SMA on the daily chart, it is also not very far from the ceiling of the descending channel that has not been broken since November last year!
Are we looking forward to the potential jump play on the downtrend of USD/CHF?
Notice that yesterday’s candle closed with a long bearish wick. It also doesn’t hurt that USD/CHF is diverging bearish on the daily time frame.
Selling at current levels or the first signs of bearish momentum would set you up for a nice win if USD/CHF ends up extending its downtrend and making new 2023 lows.
Are you convinced that the rise of USD/CHF is still intact?
You can take advantage of the current green candles and take short-term positions until USD/CHF sees some exhaustion.
Whatever bias you choose to trade make sure you practice your best risk management moves and follow your trading plan like yo momma did!