USDCHF Trading at Traderush

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USD/CHF Trading at Traderush

I spent another day trading the USD/CHF. If you’re looking for a trading asset that pays out well, it’s hard to go wrong with the USD/CHF on Trade Rush, which gives an 85% return on investment for an in-the-money trade.

I started watching the charts around 3AM EST, and price was seeming to favor an uptrend. I did have some price resistance created around the 0.91882 level (created from the 1:30-1:40 candles), and it was tested and rejected on the 3:10 candlestick. However, I wasn’t looking for another touch and reject of the level as the basis for a put option at the level. This resistance was only about three pips away from the daily pivot level of 0.91913, so I was looking the market to get up to that point instead. Usually, if there is a support or resistance level near a pivot point or a Fibonacci retracement line that I have drawn in, I’ll pass up a potential trade set-up there in favor of waiting for it to get to the price marked by either indicator.

Price did breach 0.91882 as I expected and came up to the daily pivot level on the 3:30 candlestick. It touched and wicked back down, affirming its strength as a probable resistance level. Therefore, I took a trade on the re-touch of the pivot on the 3:35 candle. The general idea of this trade was correct, as the pivot did act as resistance before heading back down, but the actual result went against me by a couple tenths of a pip and I had a losing trade.

The market would come back to the pivot level on the 4:45 candle and rejected it again. I, however, decided against taking another trade here based on the price pattern that was forming. Based on the trendline that I drew in on the screenshot below, you can see the general shape of upward slanting triangle. In my experience, whenever a chart shows an asset making higher lows – but not necessarily making higher highs, the other part of what constitutes an uptrend – price will start trading in a tight range, and hence form a triangle-shaped price pattern, and eventually break out to one side of the other. Usually, in an upward slanting triangle, the break out will naturally occur in the upward direction instead of obeying the resistance level.

Price did break through and close above the pivot level on the following candle and stayed above for close to half an hour before falling back through. At this point, I didn’t have confidence that future potential trading areas would be likely to set up soon, so I decided to close up shop for the day. For call options, I could have considered 0.91787. If not there, then way down at 0.91709. For put options, the daily pivot of 0.91913 was out of the question due to the break of the level that had already occurred.

The next reasonable level of potentially strong resistance that I could pre-determine at this point was the resistance 1 level of 0.92126. If I had stuck around for close to another three hours, I could have gotten in a resistance 1 put option on the 8:00AM (EST) candle after the initial touch and reject on the 7:30.

Beyond that, resistance 1 would have been available for trading just as the U.S. equities markets opened. It’s tough to say whether I would have traded resistance 1 at this point. Obviously it’s tough to say in retrospect by only relying on the resulting price data. I’m inclined to say that I would have passed up this trading opportunity, however. Based on the price history alone, you can observe that more and more momentum was heading into the uptrend, making a put option pretty risky here.

Probably the best trade of the morning would have been at around 10AM with the 0.92286 resistance level that had formed. A series of six consecutive wicks had formed around the level in total and usually after the third straight wick you can be confident that the level will be likely to hold in a situation like this.

High volatility is normal around 9:30AM EST, as U.S. markets open and more trading volume enters the market as the New York session gets into full swing. If you do trade these early morning market hours, be wary around 8:30AM EST (a common news time) and 9:30AM, as this is when you will normally see influxes of more trading volume. And of course, when there’s more trading volume coming into the market, technical cues from previous price data (set during a lower-volatility period) won’t be as strong or reliable. Therefore, any trades taken will have a lower likelihood of panning out as a result.

So always be careful. Mistakes will happen for all traders and I make them occasionally. But just be smart and look for the best set-ups available to you according to a strategy or system that has been historically sound in being profitable. What I show you here through my blog articles is just one example. But overall, you need to be picky in which trades you decide to take when it comes to binaries taken through offshore brokers due to the fact that the risk is always higher than the reward on these basic high/low options. Predicting the future direction of the market is rarely easy and even when multiple factors seem to support the market heading in a certain direction (and naturally taking advantage of this by placing a trade), it can unexpectedly go against you. And don’t expect every day to be profitable. In fact, three out of my last four binary trading days haven’t been profitable. But over the long-run I know that I have a strategy/way of trading and general mentality about the market that will result in net profitable trading, and that’s really all that it boils down to.

USD/CHF Trading at Traderush

Follow USDCHF Following USDCHF Unfollow USDCHF

USDCHF Forex Chart

Ideas

I change the target for my past forecast. Perhaps the USDCHF will begin to fall earlier (after reaching one of the resistance lines). Target – 0.9627

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USDCHF rebounded from 50% fibo level breaking through downtrend line price based on key level around 0.96600 price above SMA 100 RSI in uptrend line MACD shows bearish momentum weakness if price broken level 0.9693 it will confirming bullish movement to supply zone around 0.99000

Price currently make some correction. we can sell for continuation when price retesting 61.8 level and neckline area. or we can wait until price break trendline for some confirmation

usd weak // not in trade in my account but it has good probabilty

USDCHF SHORT set up Like and comment to hit TP✅

HERE IS A INTRADAY SELL SETUP ON USDCHF. PRICE IS RESPECTING THE RESISTANCE AND HAS FORMED AN M, PRICE INITIALLY DID A FAKE OUT TO CUT THE SELLERS OUT AND HAS NOW FORMED A BEARISH ENGULFING ON THE 1 HOUR CHART. I’D EXPECT TO SEE THIS PAIR TO NOW MOVE TO THE DOWNSIDE. OVER 3.5 TO 1 RR FOR THIS SETUP AND LOOKS GOOD. LETS SEE WHAT HAPPENS.

We are in a downtrend. The price is kept up to 50% correction of the last drop. When pressed down we can see a continuation of the downward movement to 0.9602 and 09553.

expecting continue upside move after broken the bullFlag. ThnakYou

Most likely going go see one final push up to the 61.8% Fib, which coincides and creates a confluence point with the third touch of the corrective structure.

In the name of ALLAH who is most merciful and the master. We strictly take trading as a business, not a gambling stuff. We have calculated approximate risk to reward ratio on every single trade with predefined profit/loss levels. Please note: -> Never go beyond 1.5% risk of your total trading capital on a single trade, -> Always move your.

Most traders will be cut shorting for the long term, then boom! They will be kicked out base on break_even. i could also do a video to explain why am expecting this move. If you really want me to explain more in a video format. Hit the comment section. 5 request an ama drop the video. TRADE SMARTER.

Hello Here we have some Persian language analysis on the USDCHF Pair in 3 different Time frames of Daily, 4H, 1H. here we are using many indicatives in order to pinpoint the critical areas on the price action. specifically i am not using any Fibonacci as it makes the graphs a bit messy as we needed an ineligible chart for better understandings please comment your ideas

Hello Bunny’s, here is my analysis for USDCHF. Let me know in the comment section if you guys have any questions. If you like my analysis please hit like. Thanks.

USDCHF expected to rise up to 1st resistance at 0.97458 where it could potentially react off and drop down to 1st support at 0.94878. Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.

Potential short to eventual bullish signal. We shall see how this pans out. It is so fun and intriguing to speculate and see all of the other perspectives and commentary on Trading view. Good luck with your trades folks.

As we see on 1Hour Chart Breaking triangle should make a great fall on it. Waiting confirmation of breaking out and closing out.

Technicals

Profile

USD CHF (US Dollar / Swiss Franc)

The USDCHF, also known as the “swissie” is the fifth most traded currency in the Forex market. It is considered to a safe haven pair due to its stability and neutral character of Switzerland and is a reserve currency used by markets worldwide.

Trading USD/CHF

The USD/CHF currency pair, also known as ‘Swissy’, is popular in the forex space despite coming with certain challenges. This page will break down the history of the USD/CHF relationship, including its benefits and drawbacks. It will then look at how to start trading the USD/CHF in 2020, from capitalising on volume and volatility with charts and strategy to signals and trading hours.

USD/CHF Trading Brokers

Chart

Breaking Down ‘USD/CHF’

Firstly, what does USD/CHF specifically mean? The exchange rate you see is simply how many Swiss francs (quote currency) it will cost to buy one US dollar (base currency).

The USD/CHF is one of the most popular traded currency pairs on the forex market. The CH stands for ‘Confoederatio Helvetica’. This is Latin for Switzerland. Whilst the F stands for franc.

But what makes this pairing so interesting? Two straightforward factors:

  1. The US dollar is the world’s largest and most actively traded currency. In fact, it represents approximately half the trading volume of all major currencies.
  2. The Swiss franc is popular because Switzerland holds an impressive one-third of the world’s privately owned wealth in its banks.

It’s also worth bearing in mind that Switzerland is not the only country to use the Swiss franc. Liechtenstein, located between Switzerland and Austria and consisting of just 35,000 inhabitants, also use the Swiss franc.

Why Day Trade USD/CHF?

With so many currency pairings available, why does the USD/CHF currency pair deserve your attention?

  • Liquidity – Despite being relatively less volatile than other pairs and less liquid than the euro and pound, this pair is still relatively straightforward to trade. Whilst there is an array of influences to consider, rates mainly depend on political and economic instability. This is particularly true when international turmoil strikes, as investors rush to the supposed safety of the Swiss franc.
  • Pound similarities – If you have traded or do trade the pound, then the USD/CHF makes for a smooth transition. The British pound and Swiss franc share similar attributes in terms of volatility, price shits, and technical characteristics. So, looking to the development of the pound may help you predict fluctuations in the USD/CHF.
  • Diverse trading vehicles – Due to volume and volatility, you have a number of different USD/CHF trading vehicles at your disposal. From ETFs to futures, options, including E-micro USD/CHF futures.
  • Stable price information – Due to the regular and consistent flow of economic data from the US, Switzerland, and Europe, conducting fundamental analysis is comparatively easy.
  • Availability of resources – In some ways, making money from online chart investing is more straightforward today. You have access to plenty of bar charts, graphs, and commentary websites. Not to mention forums full of advice from experienced traders. You even have weekly charts, forecasts, outlook, and the tools needed for Elliott wave analysis.

Drawbacks/Risks

Although the USD/CHF pair comes with a number of benefits, there are also certain drawbacks and risks you should be aware of. The most significant of which are as follows:

  • Safe haven dilemma – There is some ambiguity to factor in when day trading the USD/CHF now. In times of crisis, both are considered reserve currencies. The problem is, it can be challenging to spot which one people will turn to.
  • Dangers of leverage – Leverage and margin trading allow you to borrow capital to increase your position size. Whilst this may boost potential profits, it can also substantially increase losses.
  • Volatility – Compared to some currency pairs, including many of the majors, the USD/CHF simply does not promise the same levels of volatility. The result of this is less significant spikes and drops, and therefore, less opportunity to generate profits.
  • Automated competition – Profiting from the USD/CHF today means battling with an increasing number of sophisticated algorithms. Even with monthly charts to hand, live streaming data is being analysed and acted upon almost instantaneously by any number of trading bots.

Influences on Movement

Trading the USD/CHD currency pair relies on a detailed understanding of what influences changes in prices and rates. Unfortunately, candlestick charts cannot give you the context that can often prove invaluable.

So, what effects movement in the USD/CHF exchange rate?

  • Monetary policy – The actions of both the Federal Reserve (Fed) and the Swiss National Bank (SNB) will impact price action. The SNB, for example, is known to take an active role in maintaining exchange rates and taking steps to reduce recession and currency deflation. So, keep an eye out for the quarterly SNB announcements on interest rates and policy.
  • Swiss economic data – Economic strength and weakness cause price movements. So, there are some specific announcements that can cause USD/CHF spikes. These include the Swiss Purchasing Managers’ Index (PMI), the Swiss Consumer Price Index (CPI), plus the KOF Economic Barometer. This final resource provides twenty-five economic indicators that make predictions on how the market will perform over the next two quarters.
  • US economic data – The strength of the US economy will influence the currency pair. So, there are certain reports to keep a track of. Employment data, jobless claims, retail sales growth, plus PMI data, can all cause shifts in USD/CHF rates.
  • Wars & natural disasters – Events that affect trading partners of either country or that directly impact the two respective countries, can all be felt in the USD/CHF currency pair. This highlights the need to keep abreast of live news updates.

USD/CHF Currency Correlations

Currency pairs do not move independently of each other. Many are tied to the movement of other pairs. This is known as correlation. Correlation is a statistical measure, ranging from -1 to+1. You can have either:

  • Positive correlation – This is when FX pairs move in line with each other. The GBP/USD, AUD/USD, and EUR/USD currency pairs are all positively correlated. This is because the US dollar is the counter currency. This means any change to the US dollar is felt in all pairs.
  • Negative correlation – This is when currency pairs move in the opposite direction. This is seen in the USD/CHF, USD/JPY, and USD/CAD pairings. This is a result of the US dollar being the base currency.

Often the USD/CHF currency pair is negatively correlated with the EUR/USD. So, traders usually sell the USD/CHF when the EUR/USD price surges. The opposite then happens when the USD/CHF rallies.

There is also a negative correlation between the USD/CHF and the GBP/USD pairs. This is a result of the positive correlation of the Swiss franc, euro and British pound.

Switched on day traders will use this information to their advantage. Looking to other currency pairs may allow you to make more accurate short-term projections as to the movements of the USD/CHF.

USD/CHF Day Trading Strategy

Timing

One of the things that appeals about forex trading and investing is that markets are open 24/7, and you actually get a lot more profitable trading time with the USD/CHF pair than many others. You can trade the pair from Sunday evening until Friday afternoon in the US. However, both volume and volatility will vary throughout the day.

You will find both highs and lows during each 24-hour cycle, but bid-ask spreads will widen during quieter periods, then narrow during active periods. So, when is the best time to trade the USD/CHF pair?

The biggest daily moves often take place when Eurozone and Swiss economic data is released, plus at opening hours for equity, options and futures exchanges. A lot of the data mentioned on this page is usually released between 02:00 and 05:00 ET. The half an hour to one hour before these releases and the three hours afterwards will see the most activity.

Also, some US economic releases can come between 08:30 to 10:00 ET. Again, the periods preceding and following these releases can trigger price action. So, many strategies may benefit from focussing their attention on these time periods.

Also note – forex action often drops significantly around the US lunch hour.

Example

If you’re looking for a simple, straightforward USD/CHF day trading strategy, then consider the example below.

Whilst some traders prefer a 5-minute or 15-minute real-time chart, for this basic strategy, a 1-hour chart is recommended.

You then simply need to mark the high and low of each candle of the trading day. Then your pending order buy should be entered 10 pips above the high. Whilst your pending order sell should be entered 10 pips below the low.

You will also need to minimise your risk and protect against substantial losses. So, place a stop-loss 30 pips from your buy/sell order.

The example here is basic. If you are looking for more detailed strategies, take a look out our strategy page.

Some people prefer day trading the USD/CHF currency pair using historical price charts and complex data. Whereas some focus on trading breaking news. News updates can quickly influence market sentiment.

However, to profit from these announcements you need to be tuned in and ready to react at a moment’s notice. Plus, you need access to reliable and thorough sources.

Below you will find some of the most popular and relevant news resources:

  • Forex factory
  • Yahoo Finance
  • Google Finance
  • Bloomberg
  • Reuters
  • CNBC

On top of breaking news announcements, these sources can also provide a number of other useful services. To name just a few:

  • Forecasts for this coming week
  • Exchange forecasts and daily analysis
  • USD/CHF specific trading definitions
  • Price history reviews and yearly averages
  • Alternative trend views and perspectives
  • Long-term data, from 20 years to 30 years worth of charts
  • Technical outlook and latest analysis from experienced traders

So, if day trading on the USD/CHF using the news is part of your plan, all of the above are resources worth exploring.

History

Early History

Since the launch of the Swiss franc in 1850, the franc has enjoyed enormous strength as a currency. Today the USD/CHF pair now boasts the sixth-largest volume in the global forex space. Originally though, the history of the pair represented steady investment connections between the US and Switzerland.

Direct investments from the US to Switzerland have hit a massive $129.8 billion. As such, over the years the US has become Switzerland’s top destination for foreign direct investment (FDI).

Both currencies have also benefited from strong trade ties. Switzerland is the US’s second-largest trade partner after Germany, representing 10% share of Switzerland’s foreign trade. Switzerland is the US’s 17th largest trading partner, worth just 1.4% of total US trade.

These trade and investment connections shaped much of the USD/CHF relationship for many years. Today, however, current prices and forex live charts respond to more current events.

Recent History

To some extent, the great depression shaped the Swiss franc we know today. It appreciated against all other major trading partners, except from the Japanese yen. It grew so strong the SNB actually stepped in to intervene in the currency market.

The SNB aimed to half the appreciation of the franc against the euro. However, the intervention had clearly failed by 2020. So spectacular was the failure that the franc surged, rallying over 25% in just a few minutes.

It is clear then that the SNB play a vital role in the FX market. This is particularly the case for those trading binary options based on the USD/CHF pair.

Many people do not realise the extent that movement in your live, forex interactive chart is influenced by past events. Events that if you know happened before, allow you to analyse and predict the effects on FX rates this time around.

Role of US Dollar

Whether your day trading strategy relies on support and resistance levels, daily pivot points, or breaking news, having a feel for the staggering role the US dollar plays will help you anticipate future price movement.

Below are some of the key roles the US dollar plays:

  • Many banks all over the world hold currency reserves in the US dollar.
  • Some countries even adopt the US dollar instead of their own or peg their own currency to its value.
  • Oil transactions by OPEC countries are often carried out in US dollar.
  • The US dollar is the most popular traded currency in the world.
  • It is commonly used to settle international transactions.
  • The US is the second largest trading nation in the world, following China.
  • The US accounts for a staggering 25% of the global nominal GDP.

Just a brief look at a long-term USD/CHF chart will show you how prices and average daily ranges shift when announcements are made about the US dollar.

To understand whether the US dollar will strengthen or weaken against the Swiss franc then, you will need to consider a number of important economic indicators.

The most important of which, are as follows:

  • Consumer Price Index (CPI)
  • Producer Price Index (PPI)
  • Non-farm payrolls
  • ISM Non-manufacturing
  • ISM Manufacturing
  • Trade Balance
  • Federal Reserve Minutes
  • Retail Sales
  • Industrial Production

So, USD/CHF technical analysis and forecasts for today should take note of important data releases in the economic calendar.

Also, bear in mind the Federal Open market Committee meetings are every six weeks and economic projections will be published along with press conferences every two to three weeks. All will result in the US dollar moving sharply against other currencies, including the Swiss franc.

Role of Swiss Franc

Getting to grips with USD/CHF day trading means understanding what drives the Swiss economy and franc. Switzerland has famously remained neutral in all major wars in Europe. It is also surrounded by the Alps and considered a stable, isolated nation. This has resulted in the Swiss franc becoming a safe haven currency when turmoil strikes.

This reputation is bolstered by their role in private banking. Despite rules loosening somewhat in the last ten years, Switzerland remains a huge global player in the private banking, insurance, and investment management sectors. They are home to global titans UBS and Credit Suisse.

However, focussing on economic activity in the Eurozone, which influences US movements, is perhaps more useful. 80% of Switzerland’s trade activity happens with the EU.

This means the SNB is often more concerned with its currency vs the euro than the US dollar. It usually only steps in if the franc is too weak or strong vs the euro. Why? Because this will benefit Swiss export businesses, that are mainly involved in trading with neighbouring countries.

To a certain extent then, the role of the Swiss franc and the size of the economy is determined by the successes of their major exporting industries. You will know of two of their big exporting industries, watches and chocolate.

Overall, your daily forex analysis will be influenced by the huge role the Swiss franc plays as a stable, safe haven currency. Not to mention the support of the formidable banking system it has behind it.

Final Word

Day trading on the USD/CHF currency pair promises volatility, volume, and liquidity. However, generating profits can prove challenging as the Swiss franc is seen as a safe haven currency.

You will need to use in-depth technical analysis, calling on charts, patterns, latest foreign exchange news, plus a range of economic resources and indicators. It is also important you find the right broker for your needs, who will facilitate fast and cost-effective trading.

If you can do all of the above, then you’re one step closer to joining the likes of hugely successful forex traders, such as George Soros and Richard Dennis.

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Benefits of Using the TradeRush Site

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TradeRush Trading Opportunities

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Trade Idea: USD/CHF Uptrend Play

Checking out USD/CHF this week ahead of the latest monetary policy statement from the Swiss National Bank, and on the recent broad strength in the U.S. dollar.

USD/CHF Uptrend Play

In case you missed it, the Greenback has been kicking butt and taking names recently, rallying higher against the majors this week despite the massive stimulus from the Fed (including cutting interest rates down to a 0.00% – 0.25% range). Besides the usual “safe haven” demand for Greenbacks and U.S. assets, the recent strength likely stems from issues of companies around the world not having U.S. dollars to do business. Of course, we don’t know how long these conditions will last, but it is likely that they won’t be turned around any time soon as long as global economies continued to be damaged by the coronavirus pandemic.

On the other side of the pair, the Swiss franc has been a relative out performer in March due to the extreme coronavirus fears and market selloff, but we may see some weakness this week when the Swiss National Bank gives their latest monetary policy statement.

It’s likely they’re not happy with the franc’s recent rise, which raises the odds of some stimulative action / currency intervention rhetoric from them this week.

With those themes in mind to likely influence USD/CHF the most this week, I’m looking to build a long position. But the pair has already made a strong move higher, and with stochastic signaling potentially over bought conditions, I’m going to play it safe with my entry strategy by scaling in from current levels down to the rising ‘lows’ pattern on the one hour chart above. Traders may see this as another buying opportunity in a trend, especially if the themes discussed play out.

My stop will be roughly one daily ATR from my second entry in case we see a big pick up in volatility, and my profit target will be the next swing high for a solid short-term potential return-on-risk. Here’s what I’m going to do:

Long half position USD/CHF at market (0.9605), max stop at 0.9380 with 0.50% risk, max target at 0.9800

Long half position USD/CHF at 0.9505, max stop at 0.9380 with 0.50% risk, max target at 0.9800

I’ll be risking 1.00% of my account if both positions are triggered with a potential 1.65:1 return-on-risk. If the SNB doesn’t give traders massive stimulus or currency intervention news and the franc rallies, then I may adjust (close out full or partial position / cancel orders / roll stop) to limit or lower my max risk. If the a favorable scenario and market reaction plays out, then I’ll look to add to the position and possibly turn it into a longer-term position.

That’s it for now. Stay tuned for updates and as always, remember to never risk more than 1% of a trading account on any single trade. Adjust position sizes accordingly. Create your own ideas and don’t simply follow what I do.

This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.

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