Certus Trading Review: This Currency Pair Is Bullish (USD/CHF)
Before I talk about a nice setup in the US Dollar/Swiss Franc pair, I want to quickly reiterate that with $50 crude oil now being the floor, oil stocks should continue to move higher. So if you are missing that energy component in your portfolio, it’s time to inject this sector back into the rotation.
If you missed my post last week, click here to see how I traded Devon Energy (DVN).
Now, back to today’s topic. If you are not currently trading currencies, you should look into it. In addition to futures and options, currencies help round out my trading portfolio and provide additional opportunities. I am not talking about trading exotic unpredictable currencies, and I am not talking about cryptocurrencies. I am talking about major currency pairs that typically have low volatility (at least right now) with predictable movements. I’d stay away from currencies like the Brazilian Real or the Turkey Lira … etc.
Being in Canada, I trade the Canadian Dollar a lot – it’s easier to trade a pair that involves your country’s currency because there is less complication with the exchange rate. Of course, since most forex brokers deal in US dollars, trading the greenback is most common with very tight spreads.
Right now, the USD/CHF pair is very simple to trade. The USD has movements, but the CHF is relatively stable. In fact, the pair has been trading in a sideways range for the past 2 YEARS! And if you are trading futures, this pair trades as (SF) via the CME.
In today’s short video below, I will show you how I am trading this pair, and where my entry and exit will be. I’ll also explain to you why I prefer to go long this pair rather than shorting it.
Matt Choi CMT
Co-Author: The Winning Way
Certus Trading Review:This Currency Pair Is Bullish (USD/CHF)
Duration: 5 Minutes 31 Seconds