USD Struggles To Open The Forex Trading Week
Shain Vernier • 1 min read
The USD is struggling against the majors to open the forex trading week. Losses against the Euro, British pound, and Swiss franc have highlighted the session thus far. Lagging U.S. Retail Sales have proven detrimental to the Greenback. Retail Sales (MoM, Sept.) came in a 0.1%, well beneath expectations of 0.5%. All in all, it has been a rough start for USD backers.
Over the weekend, I issued a trade recommendation for the USD/CHF. Based on the technical outlook derived from the weekly chart, bearish price action was expected on the weekly open. This idea proved relevant as the Swiss franc is gaining some traction against the USD.
Placing market orders is always a tough proposition. Slippage and wide spreads can crush profitability, leaving performance largely in the hands of your forex broker. If you are in the business of placing forex market orders, then be sure your broker is providing low-latency market access.
Bottom Line: The Swissie is alive and kicking on this Monday session and may prompt another trade entry.
Until elected, I will have buy orders in the queue from .9798. This entry is just above the weekly 38% Current Wave Retracement (.9795) and in the vicinity of the .9800 handle. With an initial stop at .9739, this trade produces 50 pips on a sub-1:1 risk vs reward scenario.
In the event this trade goes live, check the Comments section below for tips on how to manage the position and align risk with reward as the trade unfolds.