USD/CHF

 

In addition to Tom’s e-mail that Swissie will go short before hitting the strong level of support 0.8935 to go long, I can see a setup on this pair. We have another confirmation from Adam which is anxiously expecting EUR/USD (which is an inversely proportional to Swissie) to go long as it’s taking a support of a good level 1.3142. According to currency correlation chart Euro & Swissie are mirror image of each other so they snake each other, if one goes short then other goes long & vice versa. This indicates a short move is likely on USD/CHF.

But I can see a strong problem in this setup as it’s missing a compulsory first point of check list, which is Lower highs & Lower lows. Tom said that we should start trading (Trend Continuation) from the Phase 1 of second cycle as the first cycle verify the Trend Continuation. The chart is about to complete its second cycle Lower high & Lower low. In its last cycle it failed to make a lower high as the previous high matched with its last high. So if we take previous cycle as invalid cycle then we can’t trade this setup as a Trend Continuation in this cycle. Otherwise it’s scoring 6 points but missing the compulsory one.

1. Inside bar & high test bar as well

2. RSI Convergence

3. Fib Retracement Level / Resistance 0.786

4. Resistance of 200 EMA

5. Trend Line Resistance

6. No strong level of support in the way

So I am less inclined to take this trade, let’s see what other members think about it.

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