Free Profitable Forex Newsletter
Hey! This is Philip with this week's trade idea of the Free Profitable Forex Newsletter!
In our Fx market update last week, we said expect consolidation, and indeed that is now transpiring. The USD rebound is getting reversed this week, with the EURUSD pair back between the 1.20 and 1.22 levels. The consolidations in Forex and precious metals won’t end soon, and we are likely going into several weeks of non-trending, consolidative price action.
So, it makes sense to take what the market is offering us and search for opportunities within this “ranging” context. With that said, however, the USD bounce is likely not over, and as we discussed in the weekly analysis, we still expect some moderate USD strength over the coming weeks.
This week, we are turning to the USDCHF pair, which recently broke some important technical resistance, came back lower, and is now bouncing at support. The current USDCHF levels seem like an excellent opportunity to go Long with some attractive risk-reward potential.
USDCHF Likely to Move Above 0.90 More Sustainably
USDCHF, last week, broke the 10-month falling resistance trendline around the 0.8950 level (see chart below). The breakout marks an important turn in sentiment, just below the significant 0.90 level, and has likely put an end to the downtrend.
With USDCHF still trading near 0.89 currently, long entries look particularly attractive given the potential for USDCHF to move above 0.90. The logic for higher USDCHF is similar as for our long EURCHF trade that we sent a few weeks ago. Namely, broad vaccinations against COVID-19 and more central bank QE should continue to support risk appetite. In addition, the Biden Presidency in the US should be less vocal of CHF weakness and any interventions by
the SNB to keep the franc weak.
Jim's 85% Win Rate Defies Rules About Risk
In investing, risk is like water... When used properly, it nourishes and gives life... When used carelessly, it can flood your entire house... Legendary trader Jim Fink learned this lesson early... And ever since then, he's been helping everyday people investor capitalize on "safe and steady" income strategies that flip risk on its head.
Click here to see how Jim hit an 85% win rate. 
USDCHF was falling for the most part this week but is bouncing today at the 0.89 support area. This support is even more significant at this juncture because it converges with the broken resistance trendline mentioned above. Thus, it seems likely that support here will hold.
With the USD rebound about to resume its corrective move higher after taking a pause this week, USDCHF looks ready to move higher from current levels too.
Entry:
- Long entry around current levels 0.8935
Stop:
- Below 0.8800;
- But USDCHF should not move and stay below the prior swing low around 0.8840. If this occurs, it would be a serious warning sign that this trade may fail.
Targets:
- 1st: 0.9050 (the most recent high)
- 2nd: 0.92
- 3rd: 0.93
Trade signals from the past week
- January 28, Long EURCHF from 1.0760, 1st part closed at 1.0830 after almost reaching the 1st target (1.0850) = +70 pips profit
TOTAL: +70 pips profit in the past week
TOTAL: +3625 pips profit since October 1, 2018
If you have any questions or feedback, don't hesitate to reply to this email.
Thank you!
High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Any opinions, news, research, predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
|
|
|
|
