The lack of progress on US debt ceiling give the European debt crisis a breather. The market believe that a small debt deal will be put on the table with no default but has a negative influence on debt rating with possibility of US debt losing it’s AAA rating (probably by one notch) and as result US will have trouble selling its debt and therefore driving US interest rates higher.
USDCHF (uc) fall below the 61.8% retracement and trade just below the 0.815 level. On the 60 MTF chart the MAs is stacked and negative slopping, a reflection of bearish undertone.
My entry on uc trading on 15 MTF in the face of bearish uc sentiment start at bar 1 with OB candle and the inability fro uc to cross over the MAs. Short at the low of OB bar 1 with my first TP for 1/3 of my position at 22 pips (0.81020). Take profit at that level-0.810.
Put my stop at BE.
At bar 1 close below 1.81, with next bar show a small bullish candle with the high is lower than previous high. Bar 2 an IB bar is formed and the subsequent bar is an IB bar. It was follow by a large bearish bar showing a continuation of bearish tone despite the indy’s are at bottom range.
Bar 3 is a doji with indy’s looking to move up. Exit the balance of my position and enter for long at next bar when it cross over the high of doji bar(bar 3). TP1 at 0.80979 was not reached with bar 4 is a possible evening star candle. Bar 5 creating a bearish bar that I took a stop and reversed action for short.
The TP1 was set at 0.8052 (0.805 level). The TP2 was given at bar 6 with a PB at extreme low for indy’s. SAR(stop and reverse) with a long entry at the high of 6 with TP1 at 0.80718.
The TP1 is not touched with bar 7 forming a bearish OB. SAR with entry for short below the low of bar 7.
