Good evening team,
We have a busy economic calendar tonight. All eyes will be on the EUR as economic data is scattered throughout the evening.
Tonight one set up we are watching is on the USDCHF. Economic data in the US has improved over the past couple of weeks, this is given traders something to buy into. The USD appears to have formed a base (for the time being) against a number of currencies.
Todays set up is looking at the USDCHF.
There is a number of key structures on the 4-hour time frame that is of interest.
USDCHF – 4 Hour Charts
Firstly, the USDCHF is moving towards the 38% FIB retracement level at 0.9070. The 23% FIB retracement zone can be found at 0.9050. This provides a buy zone and we will be looking to build long positions here. The 38% FIB retracement will also be a retest of the broken negative trend line and a potential right shoulder. If the head and shoulders formation plays out we could see the USDCHF trading at 0.9250-0.9310.
Trade Setup: BUY LIMIT – Entry 0.9070, stop loss 0.9020 and take profit 0.9250.
Stop loss: 50 pips
Take profit: 180 pips