The Swiss Franc Looks Set to Push Lower

This trade is based on the momentum gauge dropping below a high level after previously being above it, suggesting the strength behind the US Dollar versus the Swiss Franc may be easing and a downward move could follow.

Daily (D1): The daily chart shows the pair in an overall rising trend with some recent pullbacks. Price remains above a key support area, suggesting the bigger picture still favors the US Dollar, but the upward momentum has slowed down as the currency pair tests resistance.

4 hours (H4): The four-hour chart reveals a recent strong rise followed by a stall near a resistance level. The price is above its recent average, but the upward push appears to be losing steam, with some sideways movement and hesitation visible.

1 hour (H1): On the hourly chart, the pair shows a clear short-term peak with the momentum gauge confirming a reversal. Price action forms a drop after the momentum indicator crossed below its key threshold, triggering the sell signal and indicating a likely pullback.

15 minutes (M15): The short-term chart illustrates a small decline beginning after a steady climb, with price moving below its short-term average. This confirms the immediate bearish move, supporting the hourly signal of a potential drop.

Market conditions: Economic events include the upcoming US Unemployment Claims report at 13:30 UTC with a medium expected impact. This data could influence the US Dollar’s strength, adding volatility around the time it is released and potentially affecting the direction of this pair.

Risk: The trade has a stop loss about a moderate distance above a recent high, limiting losses if the momentum reverses unexpectedly. The take profit is set evenly with the risk, aiming for a similar amount of gain as the possible loss. If the price breaks back above the top resistance, it could close the trade at a loss.

Not financial advice.