Top trade idea for May 16th, 2016 – USD/CHF

Top trade idea for May 16th, 2016 – USD/CHF

By Vladislav Antonov on May 16, 2016 04:08:40 GMT

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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.

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.

About Vladislav Antonov

Vladislav Antonov is an Alpari analyst since 2007.

In the top 5 most influential Russian financial analysts throughout 2012-2014. 3rd place in a Russian media rating of financial analysts for quarter 1 of 2015.

Vladislav is one the most media quoted financial analysts in Russia and the CIS and is known in the trader forums under the name of A-Vlad. He has been working on the Forex market since 2000 and he specializes in writing reviews on the Asian, American and European sessions as well as on the rate of gold and silver.

Recent posts by Vladislav Antonov

  • Top trade idea for October 17th, 2016 – EUR/AUD
  • Top trade idea for July 11th, 2016 – NZD/CAD
  • Top trade idea for July 5th, 2016 – USD/SEK

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