Selling USD/CHF at MAs Once Again
Skerdian Meta • 1 min read
USD/CHF has been quite bullish throughout this year. The CHF follows the Euro closely, with the Swiss national Bank trying to keep it as close as possible, in order to avoiding price volatility in the country. The safe haven status has also helped in these times of global crisis.
At the end of August, we saw a bounce off the 0.90 level and a retrace higher. But, that didn’t last long, with the USD turning weak again and USD/CHF resumed the long term bearish trend. The decline picked up further pace during the end of November, as th sentiment turned negative again, sending safe havens higher.
Moving averages have been doing a great job in providing resistance during retraces higher, stopping the climb and pushing the price lower. We have had a few selling signals in this pair in the last few weeks. We have waited for the price to retrace higher and then sell this pair against moving averages, either against the 20 SMA (grey) or the 50 SMA (yellow) on the H4 chart, with most of the signals closing in profit.
So, this downtrend in USD/CHF has been giving up some nice profit. Today we waited for another retrace higher and decided to open another sell forex signal at the 50 SMA. The climb has stopped at this moving average and is reversing back down now, so this trade looks good at the moment.