USDCHF Retracement Setup (August 22, 2014)
USDCHF has recently broken above strong resistance level at the .9100 major psychological mark. Price has rallied close to the .9150 area before retreating, possibly to make a retest of the broken resistance before heading higher.
Stochastic is already moving up from the oversold zone, indicating that buyers are ready to push price back up. The retracement could last until the 38.2% Fib, which lines up with the .9100 handle.
Going long at .9100 with a stop at the 50% Fib and a target of new highs could yield at least a 2:1 return on risk. Adjusting the stop to entry once price hits the previous highs near .9150 could be a good way to protect profits and minimize exposure.
Bear in mind that the Jackson Hole Symposium is going on this weekend and might have an impact on how pairs open in next week’s trading.
By Kate Curtis from Trader's Way