USD/CHF Week Beginning 23 May 2011

Those that are familiar with my trading will know that USD/CHF has been my favourite pair lately. From when it failed to regain 0.98 in February, Franc strength has been a reliable trade. The daily chart below highlights some simple structure. The trend is clearly down.

(Right click on charts to open in new tab)

But the 6hr chart (below) best shows the charts “path” and short term limits. Price is now in the lower half of the bands which are turning down. Trades to kick-start the week will be on the short side from areas near the middle of the bands fine tuned by the 15min chart. So long as price is in the lower half of the bands trades will be short.

And the 15min best shows the repeating ranges. (Note how the up moves on this pair are bigger than the down moves.) There is a bear flag/pennant forming which will offer a first target of 87.20 on a successful breakdown.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s