Tuesday, July 13, 2010

USDCHF—possible buy set-up coming

On the daily chart, USDCHF looks as though it may be getting ready to test its upward trend line again. If so, I may buy although I'm not sure the USD is quite finished with its overall correction. The buy point would be 1.0492 but it would be nice to see RSI above 30 on the daily chart. One way to gauge this is to watch the hourly and see if it dips back below 30 and then closes above it. If so, a buy with a tight stop might be in the cards. You would need the tight stop because the uptrend line on the weekly chart is quite a bit lower, just above parity. It's possible it will bounce to about 1.0590 when sellers will come out in force and then head down again. More to come.

Here's the daily chart:

© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog, you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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