Live Trade – USD/CHF

Filed under: Live Trades |

I currently have a live trade on the USD/CHF forex currency pair, and I would like to talk you through this setup right now.


Figure 1.

Take a look at Figure 1. This is the daily chart for the USD/CHF pair, and it is the only timeframe that we will need to look at for this particular setup as all of the information that we need is contained within this chart. Now, there is quite a lot going on in this chart and I have put on a number of levels and indicators, so I will talk you through this step by step.


To begin with, the pair has been in a downtrend recently, with the 8-day exponential moving average crossed below the 21-day exponential moving average, signalling that some bearish momentum is in play. Price has retraced a little, and these moving averages are getting closer together, but they are still some way off of crossing over. As a result of all this, I would currently still prefer to be in a short trade than a long trade on this pair.


On Friday, price bounced off of a really good level of support/resistance, which it has already done two or three times in the past. Therefore, when price formed a very bearish pin bar right at this level, I took a good look at this pair.  I also found that this level was also exactly a 50% Fibonacci retracement area, providing a good level of confluence. I have entered a trade at a 50% retracement of the pin bar, with a stop loss just a few pips above the high of the pin bar, and a target of two times the risk. Whether this comes off or not remains to be seen – but needless to say, I will keep you posted.

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