USD/CHF bullish to 0.91500

USD/CHF forming a flat top triangle for a break to the upside.

USD/CHF

 USD/CHF daily chart hitting major support found in August and September coinciding with lower Bollinger Band and 38.2% Fibonacci from August 2011 low to December 2016 high monthly chart.

US dollar index may start to strengthen as risk comes out of SPX and Nasdaq and seeking safer assets.

USD/CHF
 
Key Points:

  • Daily – 38.2% Fibonacci (August 2011 low to December 2016 high)
  • Daily – Lower Bollinger Band
  • Daily – Approaching trendline
  • Triangle pattern for break out
  • RSI above 50
  • Price above 50 EMA
  • Solid close above triangle would be optimal
  • Moving stop to break even once target 1 is hit.

 
Key Levels:
Support – 0.90626, 50 EMA
Resistance – 200 EMA, 0.91225, 0.91500
 
Entry Zone:
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 0.90798
Supporting Entry – 0.90855
 
Candle Reversals for entry

  • Bullish Hammer
  • Bullish Engulfing
  • Bullish PiercingCandlestick

 
The Risk:
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
 
IF: Price breaks below 0.90613 and violates 50 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
 
Reward / Reward Targets:
Optimal Entry 0.90798 – Target 1 0.91225 = 2.3x Reward to Risk
Optimal Entry 0.90798 – Target 2 0.91500 = 3.7x Reward to Risk
Supporting Entry 0.90855 – Target 1 0.91225 = 1.5x Reward to Risk
Supporting Entry 0.90855 – Target 2 0.91500 = 2.6x Reward to Risk

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