NZDCHF has been trending down since the end of July 2017. The pair has followed a basic trendline on 4 occasions so far and if it uses the trend line resistance again, it will be the 5th time it bounces down since July this year.
Right now price action is testing, for the second day in a row, the trend line resistance and the essential 30% level.
I am betting big here! I have been sick and very occupied for the last 2.5 weeks and I allowed myself to make many silly mistakes without checking and rechecking the markets, I rushed and paid my mistakes with my profits and balance, so it's time to be resilient and do my best to make things better! Unfortunately the markets don't allow room for mistakes but they let us learn from them and without them all the great traders of the world would not be so great! So, naturally I accept my mistakes and will learn from them.
Ok, now let's get back to the trade idea, below is the chart.
(click on image to enlarge)
As you can see the upper, yellow, trend line is acting as a strong resistance and it lines up perfectly with the 30% from recent price action high/low. So the trade makes logical sense to me.
The only thing I fear here is I looked at a few other CHF pairs and it seems that we could witness weakness or breakouts. I checked EURCHF, its at the 30% support and very close to a trendline support, which is a key level.
GBPCHF is also reversing from a down move and is very close to a trend line support. Otherwise everything looks solid for this trade to work out.
My SL is at the 0.68985 and my TP is at 0.67250.
Let me know if you are taking this trade idea or if you have any questions about it.
Remember, ride your winners, cut your losers and always follow your system!