Trend warriors gather ’round!
May had been a good month for USD/CHF, which bounced from its .8850 lows to its current levels near .9150.
That’s a cool 300 pips in a few weeks!
USD/CHF Daily Forex USD/CHF Daily Forex Chart by TV
What makes the setup interesting today is that USD/CHF is knocking at the 50% Fibonacci retracement of March and April’s downswing.
Not only is the 50% Fib near the daily chart’s 100 SMA resistance, it’s also not too far from a descending channel ceiling that hasn’t been broken since November last year!
Are we looking at a potential play to jump on USD/CHF’s downtrend?
Take note that yesterday’s candlestick closed with a long bearish wick. It also doesn’t hurt that USD/CHF is sporting a bearish divergence on the daily time frame.
Shorting at current levels or the first signs of bearish momentum would set you up for a cool win if USD/CHF ends up extending its downtrend and making new 2023 lows.
Convinced that USD/CHF’s upswing still has legs?
You can take advantage of the current green candlesticks and take short-term trades until USD/CHF sees some exhaustion.
Whichever bias you choose to trade, make sure you’re practicing your best risk management moves and following your trading plan like yo momma made it!
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