Thursday, October 15, 2009

Swiss Frank looking to get stronger than US Dollar

USDCHF is moving a very nice downward trend and well set cross an important 1.000 level mark, below which Swiss Frank will get stronger than US Dollar. It happened last time in January 2008 but this time, it seems to stay below that level for longer than last time.

It is getting a bit difficult at the moment to figure out at which level to look for selling USDCHF. The main difficulty is that USDCHF is being traded in that zone where it has been very rarely before and also not too many support or resistances present.

The levels to sell USDCHF can mainly be calculations based on 'fabonacci retracement' levels. Every trader might have his own preferred retracement entry levels. Other thing that traders will look into will be the average daily move by USDCHF over the last few days to figure out how much profit target they should set to exit on Daily trades.

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