Few days ago I pointed out already, that something is “cooking” on USDCHF pair.
All 3 USD pair, USDJPY, USDCAD and USDCHF have almost the same setup. There are divergences on daily or 4h chart. All are in uptrend, but they are showing us that they could fall a bit to breath and then continue their up trends.
Let’s take a look USDCHF pair.
Yesterday this pair formed daily outside bar. Outside bars can be traded in a 2 way: enter at the low or at the top immediately once candle is closed or if candle is too big, wait for a retrace and then enter at 50 or 61.8% retrace on it. This second option we got today on USDCHF pair.
Retrace up to a bit more than 50% and role reversal. Aggressive traders could entry at RR already. More conservative traders could wait for the last 4h pin bar candle low to be broken and then enter short. Once in a trade, manage your stop accordingly, since bellow at 1.0090 there is weekly support and a bit bellow it we also have WPP. Please be aware, that this trade is counter trend so it is a bit more risky than when trading with trend.
There is no major US or Switzerland news ahead of us in future 24 hours.