USDCHF Buying on reverse head and shoulders (20.06.2013)

A lot of volatility has been observed in the markets over the last 2 days and US Dollar has been strengthening.We observe an opportunity to buy the US Dollar against the Swiss Franc.

US Dollar sore yesterday after hawkish comments by the Federal Reserves. Today we saw increased US unemployment claims and eventually the USDCHF declined after a point.

Read about the Trend/Wave/Extreme system here

USDCHF (4-HOUR) BUY

usdchf 20.6.2013

Why Buy

  • Trend (long term) indicators are pointing up
  • We see a reverse head and shoulders pattern evolving
  • The pair is currently under a down correction
  • The pair is currently finding support at the 38.1% fibonacci retracement level

Note: As extreme indicators are still pointing overbought be a bit cautious with this trade and set stop loss. May have to wait a bit before entering to ensure it does not move lower.

Read about the Trend/Wave/Extreme system here

The following is an analysis of the currency markets using the Trend/Wave/Extreme system . You can read about the system here. Please read our Risk Disclosure and Terms of Use  prior to making a trade using this information.