[B]USDCHF | Daily[/B]
[B]Long or Short:[/B] Long
[B]Entry Point: [/B] TBD – still waiting for a reversal candlestick. Ideally I would like to enter around .8620,
[B]Stop loss:[/B] .8510– below recent lows
[B]Profit target:[/B] .8930
[B]Risk Percentage:[/B] 0.50%
[B]Reward-to-risk Ratio:[/B] Roughly 2.7:1
[B]Indicators used:[/B] RSI
[B]Trade Rationale:[/B]
The franc is really, really, really strong right now, but I do think the move may be overdone and we could see a retracement soon. I think we could see a double bottom form at .8560. RSI is also almost below 30 so we might see a reversal soon. I am just waiting for RSI to go below that level, or for a reversal candlestick to form before I go long.
Because this is a contrarian trade, I will only risk 0.5% of my account. If it shoots up, I stand to make about 1.35%, which isn’t so bad.
[B]Trade Adjustment:[/B]
If the dollar manages to make a nice rally next week, I would consider holding onto this position for the long haul and see if the pair can break above resistance at .8935.