Good afternoon team,

 

As you know the DXY has come off of its recent peaks due to weak economic data globally, which is suggesting the FED could potentially slow down on the interest rate hike cycle later in the year. The DXY has re-testing the top of a rising channel structure and has broken out to the upside of a falling wedge. With tonight’s GDP data due, there is a chance of a counter-trend rally post announcement. The USDCHF appears to have completed an initial 5 wave decline, which indicates a possible counter-trend rally. We are looking to buy into the USDCHF as the overall trend is still bullish.

DXY 4 Hour Chart

USDCHF 4 Hour Chart

Trade Setup: BUY market execution, current price 0.9624, stop loss 0.9571 and take profit (target 1): 0.9750

Stop loss: 53 pips

Take profit: 126 pips