Intraday trading analysis (tips) for USD/CHF 5 May 2011, we recommend, Enter short in USD/CHF below 0.8605 for target of 0.8575 and 0.8555 also place protective stop loss above 0.8615.
Reason to trade short: On daily chart we find USD/CHF was on strong downtrend and we see a good selling opportunity today on 1 hour chart. CHF has been showing strength and is more likely to continue the current trend to test its next support level at 0.8555. RSI support the down trend also stochastic had the cross over and is in favor of the trade on 1 hour chart. So we can see the pair to weaken further and move towards its next support level which is at 0.8555, so trading in the direction of the trend we recommend to trade short on USD/CHF pair.