Forex Trading Strategy: USD/CHF Support Near 0.9505 at Risk

USD/CHF (0.9525)

• Resistance Levels: 0.9565, 0.9630, 0.9723
• Support Levels: 0.9510, 0.9430, 0.9355

We saw this one coming. The USD/CHF has lost momentum lost ground. The market formed a dark cloud candlestick just below 0.9640 and retreated. Please see the above MT 4 daily chart. Near term support is at 0.9510 with a break, and daily close, below that level targeting 0.9505. Below this level will then challenge 0.9430. Daily close below this last level targets 0.9355.

Should the Dollar close above 0.9505, and stay above this support level, then we would challenge 0.9565. Then, with a daily close above that level, we would challenge. 0.9630.

Let us look at a trading strategy. First I want to reiterate that these strategies are for educational purposes and do not constitute trading advice.

For example, a trader, such as myself, who bought (or gone long) the USD/CHF at 0.9070 has taken decent profits. The trader might want to think about locking in profits at this point and capture the bullish momentum achieved. A stop loss at 0.9115 would be prudent. This is an example to capture profits when a market turns south. You still meet your objective and protect your downside.