Short-term Trading Idea: USD/CHF – Bull Speculation: After a Double Bottom Possible Break in Trend

Trading opportunities for currency pair: the USD/CHF has crept up close to a strong resistance. A break at 0.98 is expected and then a strengthening of the USD against the franc to 0.9940. Look to buy dollar only after a break in the level and a consolidation above 0.98 that doesn”t last long.

The last Swiss franc idea I made was published on 25th May, 2015. When the idea was published, the dollar was trading at around 0.9433. According to the double bottom price model and a break in the trend line, I expected to see a weakening of the franc to 0.9626 and, with the rate passing 0.9626, to 0.9860.

The buyers weren”t able to break the trend line on the first go. The growth renewed after sixteen days from 0.9150. 0.9626 was reached on 20th July, 2015 and 0.9860 was reached on 7th August.

We can see a similar picture on the daily today: a double bottom in May. The technical situation is really attractive for buyers. The USD is gathering pace. The bulls need to pass 0.98. This is a strong resistance since here the trend line crosses the horizontal level. The faster it will be passed, the higher the target for the dollar to strengthen to. Taking bounces into account, I”ve put the target at 0.9940. Buy dollar only after a break in the level and an unsustained consolidation above 0.98.

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Source:: Short-term Trading Idea: USD/CHF – Bull Speculation: After a Double Bottom Possible Break in Trend

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