Top trade idea for May 26th, 2016 – USDCHF
By Mircea Vasiu on May 26, 2016 09:36:39 GMT
I am bullish USDCHF here as no matter how you look at this structure on the daily chart there is only one conclusion that can be drawn: it is a corrective pattern.
Not only that it is a corrective pattern, but it should be followed by an impulsive wave so the move that started from 0.9749 should not stop until we have a new high above 1.03, as crazy as this may sound.
Having said that, the rules of an impulsive move should be respected on this trip higher and I would say it is a trade with a high probability of reaching the target.
Putting some fundamental events in front of this analysis leads to three reasons for why this move may happen: ECB next Thursday, NFP or Fed in June. In all cases, market should position for the event before, so expect the US dollar to gain some strength from this moment on.
Therefore, staying long for 1.0327 with 0.9749 is our recommendation.
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.
Recent posts by Mircea Vasiu
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