USDCHF - BUY - 29th January 2021




USDCHF - BUY - 29th January 2021 (Closed)


Good morning team,

There is a lot of chatter about the US stock market bubble being on the verge of bursting. We will be looking to position on the US stock market later this evening.

Why do bubbles burst?

  1. When you reach a level of extreme enthusiasm, without exception the bubble has always burst in the coming months. It is impossible to maintain this level of near ecstasy. Investors have put in their last dollar, they are all in. They can’t borrow any more money or take any more risk. So how is that level of enthusiasm suppose to be maintained?
  2. The only protection against the bubble bursting is the US Government providing stimulus. WHICH is taking longer to be approved, raising questions on whether an agreement will take place. And even if a stimulus check is provided, there could be a final push / parabolic rally higher before the bubble bursts.

With this in mind, we see the USD safe-haven long play being a key theme over the next week.

This morning we are taking a look at the USDCHF again. Well done to those already positioned on the pair from last weeks analysis at the 0.8840 region. We are looking to build into this position this morning.

USDCHF 1 Hour Charts

Trade Setup: BUY MArket execution, current price 0.8885, stop loss 0.8825 and take profit 0.8965-0.9015.

Stop loss: 60 pips

Take profit: 80-130 pips

Trade Setup
BUY - Market Execution

Entry
0.8885

Take Profit
0.8965-0.9015

Stop Loss
0.8825