+30 Pips In The USD/CHF And Looking For More!
Shain Vernier • 2 min read
Last Friday I outlined a long trade for the USD/CHF. The relatively calm news cycle has helped this trade post a maximum gain of 37 pips. As of this writing, the USD/CHF is trading .9792, just off of the .9800 psychological level.
This trade has performed as expected, trading in the green since election. However, during Tuesday’s overnight session the Swiss unemployment metrics will be released. The news is likely to cause some turbulence in the market.
If you haven’t taken profits from this trade yet, it may be time to start thinking about ringing the cash register. Economic data can bolster participation and drive price any number of ways.
Not a whole lot has changed in this market since Friday. Price is rotating between our technical levels of .9800 and .9770 with bullish sentiment.
USD/CHF Daily Chart
Confirmation of the technical levels has given validity to the overall read of the market. We are seeing a considerable tightening of the trading range, 34 pips for the day. A few things to be aware of:
.9800 has brought sellers to the table for the past two sessions. If this level holds, tonight's data release could prompt correction.
A definitive break above .9800 will likely bring the topside resistance level of .9878 into play.
A bearish correction to .9750 is very possible as we move forward into the trading week.
Bottom Line: No one has ever gone broke taking profits. While moving the stop underneath today’s low at the close is good management, it may be a better idea to rack the available pips and move on.
In my opinion, we are very likely to see rotation from the USD/CHF until Friday’s U.S. CPI numbers are released. With so many other products to focus on, taking profits now is a solid play.
As always, trade smart and for tomorrow!