In October, 2010, we went long USD/CHF. Today, it’s a couple hundred pips lower, but it hasn’t proven that it wants to go substantially lower. In fact, one interpretation of the price action indicates that it is ripe to rise much higher in the coming months!
In the chart above, first notice that price has been supported by a very strong 16-year trendline. Also notice that the sideways action since October, 2010 appears to be an ending diagonal in which each of the subwaves breaks down into 3-waves. There is MACD divergence, and today price broke back up into it’s previous range. if price can manage to stay above .92, We’ll be happy to continue holding this position long.
