Buy above 1.0101. Stop loss at 1.0052. Take profit at 1.0184.
Reason for the trading strategy (technically):
Price reversed beautifully above our stop loss level yesterday. We remain bullish above 1.0101 support for a push up to 1.0184 resistance (Fibonacci retracement, horizontal overlap resistance).
Stochastic (21,5,3) is seeing a bounce above 9.3%.
Reason for the trading strategy (fundamentally):
The main news event driving the USD today is the U. of Michigan Confidence. It assesses consumer confidence regarding personal finances, business conditions and purchasing power based on hundreds of telephone surveys. A low or falling University of Michigan Sentiment value is considered an early indicator of an economic downturn. We’re expecting a higher value which means a stronger USD, which goes in line with our bullish USDCHF trade.
The other news event driving USD today is the U.S. Advance Retail Sales which is a monthly measure of sales of goods to consumers at retail outlets. The figure is a significant market mover, valuable both for its timeliness and insight into consumer demand and consumer confidence. We’re expecting a positive value here meaning more consumer spending and confidence, leading to strength in the USD. This would go in line with our bullish USDCHF view we have today.