Welcome to our newest feature; DecaPip. The concept is simple: our professional market technician, with an exceptional system, showcases his own daily Support and Resistance levels across a broad spectrum of FX currency pairs. The most effective way to use the levels are:
- If indicated levels hold, look for the price to reverse.
- If levels are broken, look for the price to continue past to new highs or lows.
In this Edition of DecaPip Daily I would like to take a closer look at the USDCHF and two potential ways we could look to trade this currency pair.
Previously I have mentioned we can use the USDCHF as an effective way to take a position on the EURUSD as they closely mirror each other and tend to move in the opposite direction when trending.
With this in mind and if you are currently looking to trade either pair the chart below really highlight’s an explosive move that may be about to take place soon.
We can see from this chart an extreme amount of pressure around the 9545-50 area and thus far buyers have failed to step in to take the currency higher.If this were to happen the move down on the EURUSD would be particularly explosive.
The chart highlights some key areas of interest should we look to take a momentum or swing trade.
The safest way to trade this pair in my opinion would be to look closely for a test of support 1 on the chart and initiate a swing buy position with a target of R2.
Alternatively if we do start to brake the 9550 area with sustainable momentum we could look to take a Buy trade position upon a higher time price close.
Got any questions about our new DecaPip feature? Contact Nathan at Nathan@littlefishfx.com
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