I know most of you like to trade the EURUSD, mostly because it is usually the currency pair with the tightest spread…
I know, I like that too…
But you also know that the USDCHF is negatively correlated to the EURUSD… that means that when the EURUSD goes up, the USDCHF tends to go down and viceversa.
And if you have been following my analyses, you also know that our job as traders is to find the currency pairs that have the clearest market conditions…
And let me tell you something, right now, the USDCHF is way clearer than the EURUSD…
So if you asked me… which one would you trade right now? I’d definitely go for the USDCHF… without a doubt!
So here is what I think about the USDCHF
Here is what the long term chart look like:
The first thing that you notice in this chart is that it’s got clear swings, and clear support and resistance level, so I would definitely would feel comfortable taking a trade here…
The thing is that right now it is too close to an important long term level (0.8929).
We don’t know (yet) whether the market is going to get rejected or break through that level… So we need to look at the short term charts…
So here is my plan:
If the USDCHF breaks through the upper resistance level it will trigger a bullish condition, that means that I’ll look only for long opportunities.
If it breaks through the lower support level it will trigger a bearish condition, which means that I’ll only look for short opportunities.
If it keeps trading in between both levels, I’ll do nothing.
What do you think about my trading plan?
Are you going to trade the USDCHF?
What other pairs are you monitoring?