USDCHF Technical Analysis 12.22.2017
USDCHF is showing two possible bullish patterns. Blue bullish pattern already triggered buys at the blue BC 0.50% Fib. retracement level and price is currently trying to breakout above the purple bullish wedge pattern. More confirmation of a possible rally higher will be if price actually breaks above the top of the purple bullish wedge pattern and traders should also watch for a break above 0.9910 level. Break above the 0.9910 will push USDCHF higher towards the 1.0 handle and towards the target 1.0080 area. Once USDCHF breaks above the 0.9910 level the pair will need to stay above 0.9827 for the pair to continue higher. Break below 0.9827 will send the pair lower towards the December 1 2017 lows and possibly extend even lower.
If looking to buy USDCHF traders should be patient and wait for price to make a move above the 0.9910 level. Waiting for price to move above the 0.9910 level will confirm the bullish wedge pattern to the upside. Bullish view is invalidated if price moves below 0.9827 low of the wedge pattern and stops should be placed at this level. The 2:1 RR target is at the 1.0076 and traders should aim for this level with taking some profits also at the 1.0 handle.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
*** Always use proper risk/money management according to your account size ***
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