Price on the USDCHF is attempting a breakout lower like a daily chart shows below. Recently price on this pair is trying to break through the daily support level. The US dollar (USD) has been heavily sell-off all over the market since the NFP (Non-Farm Payroll) data been released last Friday.
The USDCHF has been a little highlight on this blog as I’ve been write about this pair on May 17 and May 18. The daily support level that I’ve been highlighted in this article is the same with the latest article that I write before.
What will I do from here? There are two things that I will consider.
1). If the price could move lower and break the daily support level, I will wait for the price to make a quick pullback and retest the daily support level (which is act as the new daily resistance level), then start hunting for an opportunity to go short. I will focus only on the intraday timeframe if the price could make a quick retest. If we look closely at the 4-hour chart below, we can see that price on the USDCHF has printed a new low (lower-low) and price breakthrough below the daily level since early June. So I prefer with this scenario 🙂
2.) On the other hand, if the price respected the daily resistance and forms an obvious bullish price action signal, then I will go long. I’m only considering an obvious signal on the daily time frame since in the daily chart I still consider that the pair is traded in the range/sideways area.
USDCHF daily chart
USDCHF 4-hour chart – zoom out
USDCHF 4-hour chart – zoom in
Don’t forget to see my latest trading setup on: