Why you should buy USDCHF today

A buy opportunity on the USDCHF has risen following the easing in USD and the rise in EURUSD with which is correlated.

USDCHF (4-HOUR) BUY




Why Buy
- A clear UP trend pattern
- Trend indicators pointing Up
- A correction may be over evident by the Up candle currently formed and the Extreme indicators being oversold
Note: Wait for an additional Up candle before going long


Read the rest of the today's Trend/Wave/Extreme analysis for the market here.

Are you saying that you expect USDCHF to rise because EURUSD is rising?
That wouldn't make sense as these 2 pairs usually move in opposite directions as they are inversely correlated.

I'm not questioning your prediction that the USDCHF will rise, after all it is in a strong uptrend.
I'm just wondering why the rising EURUSD has any part in your reasoning

USD/CHF DAILY as of Friday, 08 March, 2013
Elliott Waves High Volatility has detected a possible point 4 of a WolfWave (21%) pattern for US Dollar / Swiss Franc. This pattern is an expanding triangle and trades from the next point. When the peak or trough will form, usually after crossing or touching the extended line of points 1 and 3, the price will move in the opposite direction towards the target line formed by the extension of points 2 and 4.
The present wave patterns are:
fast amplitude (8%): bullish wave 2
moderate amplitude (13%): bullish wave 1
normal amplitude (21%): bullish wave 1
US Dollar / Swiss Franc is long term Bullish as the 144 days moving average of 0.93 is increasing. The Relative Strength Index is at 62.52 in the neutral territory. The Relative Momentum Index is at 74.55 in the overbought territory. An important indicator for Elliott waves, the Elliott oscillator is at 0.01, in positive territory; this is a bullish sign. An equally important indicator, the STORSI is at 68.85. This value is in the neutral territory.

Hi Gumrai.

The main reasons for buying USDCHF are the ones that I have mentioned in the why Buy part.
The principles of my system finding trading opportunities are the following.
1) Identify a pair with a strong trend
2) Wait for a significant pullback to occur (Extreme indicators opposite to Trend)
3) Open the trade once 2 consecutive candles appear in the direction of the Trend

The fact that EURUSD has risen goes into (2).
-USDCHF has pulled back substantially to the downside making it a buy opportunity.
-As the EURUSD has risen up, USDCHF has dropped down (as you correctly mentioned they are counter correlated)

Hope this clear
Regards

Hope you took the trade. It is at 95.10 at the moment and still going higher.
Over 80pips earned

=)

Looks like it is time to get back in.

Why Buy

-A continuous Up-Trend holding

-Trend Indicators pointing Up

-Extreme Indicators pointing Oversold

-Down correction should be over ,as seen by the two consecutive Up candles

More about today here