On the longer term charts this pair has really leveled off and is in a definite range.  Within the range there are potential trading opportunities when we shrink the time frame and look for set ups on these smaller time frames.  In this post we will look at the 1 hour chart.

Currently there is a descending wedge which offers a couple of trading options.  The pair recently tried to test the upper trend line, but failed.  This sets up a potential short with a target being the lower trend line.  At this moment the reward for risk is not that attract for this trade, but if the upper band is tested again and does not definitively breakout, then the the reward to risk will improve greatly.

If a breakout of the wedge where to occur, the profit target would be about 85-90 pips from the breakout point.  With trend lines where they are at currently, a breakout would test either the July 6 High, of the July 1 Low.  Although as time progresses it is more accurate to establish the profit targets based off the 85 pip target from the breakout price, instead of the using those swing high and lows as targets.

Please read the latest How to Use the Trade Ideas blog if you understand the analysis. If you still have questions after, feel free to comment

Source: Forexyard, USD/CHF 1 Hour Chart

~Cory Mitchell, CMT
Chief Market Strategist
Remember, failed breakouts are tradeable too!

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One Response to “USD/CHF Potential Day Trade Set Ups”

1. admin says:

   July 15, 2009 at 12:13 am

   Target hit. The pair just slightly exceeded the profit target based on the breakout price.