After a large bullish drive for the CHF since 11/28, the CHF is reading oversold on most oscillators in the H4 timeframe as well as the H1 timeframe stalling and reversing just before. Along side this reading, the recent missile launch from North Korea has scared traditional safe haven investors out of the JPY. North Koreas geographic positioning to North Korea, as well as being a major ally of the United States, makes them a prime target in the case of war. What classifies a safe haven currency is a economy with a stable political system, economic growth and little to no threat of war.
Well, I guess we can scratch that off the list for Japan. This creates uncertainty which investors tend to shy from. Now the technical setup for the JPY economic data releases for Unemployment Rate and Inflation Rate are about to releases and if this is positive for Japan, this will cause the Swiss franc to align technically as well. Whats completing from a technical stand point in this trade setup is:
1) bearish AB=CD
2) bearish Crab
3) major supply level
4) potential completing large evening star
5) oscillator over bought reading
6) Bollinger Bands break of upper band reading
7) momentum has slowed
The position sizing for this trade and profit target fits exactly into my criteria.
It's always important to make sure your money management and risk management criteria is favorable to the trade setup.
-David DaVinci
Well, I guess we can scratch that off the list for Japan. This creates uncertainty which investors tend to shy from. Now the technical setup for the JPY economic data releases for Unemployment Rate and Inflation Rate are about to releases and if this is positive for Japan, this will cause the Swiss franc to align technically as well. Whats completing from a technical stand point in this trade setup is:
1) bearish AB=CD
2) bearish Crab
3) major supply level
4) potential completing large evening star
5) oscillator over bought reading
6) Bollinger Bands break of upper band reading
7) momentum has slowed
The position sizing for this trade and profit target fits exactly into my criteria.
It's always important to make sure your money management and risk management criteria is favorable to the trade setup.
-David DaVinci
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Content from: David DaVinci
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