Trading long on USD/CHF? – Gold higher on bad US data [Video]

Brad Alexander FX Large Limited

Gold took a huge jump higher, breaking this upper trend line, and price action has stalled at resistance.

If we get a break above we could be looking at a new record high which was set last December.

If we get a bounce to the downside, we would wait for some technical confirmation like a cross and a downturn below 80 on the stochastic oscillator.

So? What happened?

We note that all USD pairs had the same price action weakness including a violent whipsaw based on last Friday’s bad PMI number.

The weakness continues on EURUSD, GBPUSD, and USDCHF.

One pair that we will monitor is USDCHF where we have an uptrend and the possibility of a reversal if this fall in price action is temporary and if the stochastic oscillator turns up above 20.

The reason that we have CHF strength is today’s CPI figure (Inflation) which was higher than expected.

This week we have a lot of opportunities with Canadian and European Interest Rate decisions, Jerome Powell’s testimony to Congress, and the US Non-Farm Payrolls.

EUR is the strongest currency so watch the ECB news this week and maybe we can spot some violent price action to the downside, to get us into trades WITH the trend.

Author

Brad Alexander

FX Large Limited

Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.

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