Top Trade Idea For January 29th, 2015 – USDCHF
By Mircea Vasiu on Jan 29, 2015 12:00:55 GMT
January was clearly the CHF month as the SNB dropping the 1.20 eurchf peg brought a higher chf all over the dashboard.
However, I started to like the usdchf pair as from a technical point of view the whole move lower seems to be an impulsive move that ends a flat pattern on the bigger time frames.
This makes the move that followed the beginning of a new wave, most likely an x wave of the same degree, and it should rip those highs.
However, 0.9700 should be a place to book profits as before parity bears should step in.
From a fundamental point of view, negative rates in Switzerland should made the local currency not that attractive to investors and SNB pledged to step in when necessary.
All in all, bullish setup for the usdchf pair, and the rising channel in the chart above should be host to a zigzag or a zigzag family pattern.
It remains to be seen if markets will confirm this scenario. Careful with those margin requirements though as majority of brokers increased them.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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