USDCHF: Consolidation Likely Before Trend Resumption
With the year on year inflation in the US reaching 8.3%, the USD looks to ease of its rally slightly and most likely looking to correct to the downside after great gains in the previous numerous weeks. Shall this occur, that does not mean that the USD rally has ended, simply put the price is consolidating before resuming its upward trend. The fundamentals are still strongly in favor of the USD with inflation and FED rate hikes being the main propelling factor.
Looking at the main chart, the price in the USDCHF broke the main resistance and now it looks like another upcoming resistance lies at the parity level. However looking at the risk to reward ratio which is not in our favor, we must patiently wait for the USD to retrace to achieve an equal 1:1 RR. The main support lies at around 0.91000 region which should act as a solid stop loss.
Have a look at the main chart to observe the details clearly. Note that the setup would be invalidated shall the parity (1.0000) hit first before a retracement could take place. Shall the trade criteria meet (retrace to desired level) then i will make a new post with the trade instructions.
Cheers, I hope you find this insight helpful. Please Like & Follow for more Insights into major currency pairs and trading signals.
Looking at the main chart, the price in the USDCHF broke the main resistance and now it looks like another upcoming resistance lies at the parity level. However looking at the risk to reward ratio which is not in our favor, we must patiently wait for the USD to retrace to achieve an equal 1:1 RR. The main support lies at around 0.91000 region which should act as a solid stop loss.
Have a look at the main chart to observe the details clearly. Note that the setup would be invalidated shall the parity (1.0000) hit first before a retracement could take place. Shall the trade criteria meet (retrace to desired level) then i will make a new post with the trade instructions.
Cheers, I hope you find this insight helpful. Please Like & Follow for more Insights into major currency pairs and trading signals.
