Going Long USDCHF as EURCHF Approaches Key 1.20 Barrier

The SNB is on record as saying that it will not allow the EURCHF exchange rate to fall below 1.20. Since this grand proclamation in 2011, the SNB has lived up to its word, defending the 1.20 level each time the EURCHF exchange rate goes there. We are currently very close to that level after a marked decline, and technically, we see signs of consolidation that often precede a reversal -- which in this case would be a move higher.

On USDCHF, we see a reversal candlestick after a pullback in an uptrend, which signals a possible resumption in the primary uptrend. Based on these factors, I'm long USDCHF at .9556, with my stop at .9510 and my target profit at .9726.

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