Thursday 24 May 2012

USD/CHF false break.

We've just seen a false-break to the up-side in the Dollar Swiss pair.  This converges with previous major resistance and is probably worth a top-picking attempt with tight pre-determined stop above the high of the preceding hammer candle on the 4hr chart as shown below. Generally I would be wary of fighting the clear up-trend in this pair as the global "risk-off" theme continues, however, the risk reward could still be here if resistance holds-up and profit taking ensues.    


I will be looking to add more if we see a break below the triangle set-up as illustrated on the 1hr chart:




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