USDCHF – BUY – 3rd September 2020

USDCHF – BUY – 3rd September 2020 (Closed)

Good morning team,

Unlucky yesterday with gold, gold dropped 300 pips but unfortunately did not make it to our entry point. You can now close out the pending order.

Today we are taking a look at the USDCHF. Last night the USD rallied due to the ADP employment change showing an increase of 428k, however this did fall below the estimate of 950k. The US labor market will remain in focus for the remainder of the week as we see the next round on initial jobless claims tonight followed by the unemployment and non farm payroll data tomorrow night.

On the risk front, Pompeo has announced new restrictions on the movement of Chinese diplomats in the US. The Secretary of State has retaliated against senior Chinese officials, “for years the Chinese Communist party has imposed significant barriers on American diplomats working inside the PRC”. The tit for tat relationship may continue leading into the US Election campaign.

We know the SMART money has positioned long on the DXY (USD) therefore it is a matter of time before the selling pressure ends. Check our latest feature “Market Sentiment Positioning” for more information.

Market Sentiment Positioning

USDCHF – 1 Hour Charts

There has been a negative trend line breakout followed by a retest of the broken trend line.

Trade Setup: BUY Market execution, current price 0.9109, stop loss 0.9052 and take profit 0.9195.

Stop loss: 57

Take Profit: 86

Manage risk by moving your stop loss to the open price when you are in a profit. IF the market breaks below the trend line support it will indicate further downside so we will close the position.

Trade Setup
BUY - Market Execution

Entry
0.9109

Take Profit
0.9195

Stop Loss
0.9052