I have decided to take a short position on USD/CHF for a number of reasons.
1.) It looks like it has topped out and is into forming a dbl top pattern.
2.) Hourly chart shows stochastic divergence on a large scale.
3.) Probably the most important. Weekly chart shows the top exactly at the Fibonnaci retracement level of 50%.
This is huge. the exact moment in time we are in is exactly the 50% retracement level on a weekly scale level.
I have to use a very wide stop which is expensive if this doesn't play out right. The stop is right around 60 points. I am looking for 300 points off of this play within the next week.
This is a 1/5 risk/reward and I think it is a good play. I'll continue to think so till I get stopped out of my position. Right now it is in negative territory, but I don't feel too worried yet.
The three charts attached are a 5min chart, daily chart, and finally the brown chart is the weekly chart.
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